did microstrategy do a stock split? 2024

MicroStrategy stock split (2024)

Brief summary: Did MicroStrategy do a stock split? Yes. MicroStrategy Incorporated (Nasdaq: MSTR) announced a 10-for-1 forward stock split on July 11, 2024, applied to both Class A and Class B shares. The company set a record date of August 1, 2024, distributed shares after the close on August 7, 2024, and the stock began trading on a split-adjusted basis at the market open on August 8, 2024. Management said the split was intended to make the shares more accessible to a broader range of investors and employees. The announcement came while MicroStrategy continued to position itself as both an enterprise analytics software company and a large corporate holder of bitcoin.

Background

MicroStrategy is known primarily for two things: its enterprise analytics software business and, since 2020, its sizable treasury of bitcoin. The company originally built its reputation providing business intelligence and analytics software to large enterprises; in recent years, its public profile has grown because of a strategy to hold bitcoin as a treasury asset. That dual identity—software firm plus corporate bitcoin holder—has contributed to volatile share-price behavior tied partly to broader cryptocurrency markets in addition to software-sector developments.

Before the split, MicroStrategy’s per-share price had risen significantly relative to historical trading ranges, driven by investor interest in the company’s bitcoin exposure as well as growth expectations for its software business. High per-share prices can make trading in single-share lots less accessible to retail investors and complicate employee stock plan participation—factors that often lead boards to consider a forward split.

Announcement

Did MicroStrategy do a stock split? The board of directors formally declared the split on July 11, 2024. As announced in the company press release and SEC filing that day, MicroStrategy declared a 10-for-1 forward stock split. The split applied equally to both Class A and Class B common stock. The corporate action was implemented as a stock dividend, under which each outstanding share entitled the holder to receive nine additional shares for every one they already held.

As of July 11, 2024, according to MicroStrategy’s press release and the accompanying SEC exhibit, the board approved the split to be paid as a stock dividend and set the administrative dates that would govern the record and distribution timing.

Key dates and mechanics

Key dates and mechanics for the 10-for-1 split were announced in the July 11, 2024 filings. Important timeline items included:

• Record date: August 1, 2024. Holders of record at the close of business on this date were eligible to receive the split distribution.
• Distribution timing: The new shares were distributed after the close of trading on August 7, 2024. The distribution was effected as a stock dividend, meaning each existing share entitled the owner to nine additional shares.
• First trading on split-adjusted basis: MicroStrategy shares began trading on a split-adjusted basis at the market open on August 8, 2024.

Mechanically, a 10-for-1 forward split multiplies the number of shares outstanding by 10 while reducing the per-share price proportionally so that the company’s market capitalization remains unchanged immediately upon the split. Shareholders’ percentage ownership and voting power were unaffected by the split. Brokerage accounts typically received the additional shares automatically; however, fractional-share handling can vary by broker, and some brokers may take time to display the adjusted holdings or to credit fractional-share cash-in-lieu amounts.

Rationale given by company

Why did MicroStrategy do a stock split? In announcing the split, MicroStrategy said the primary drivers were greater accessibility and participation. The company stated the split was intended to make the stock more affordable to retail investors and more accessible for employees participating in equity programs. MicroStrategy framed the move as a way to broaden the investor base, potentially increase liquidity among smaller-lot traders, and facilitate routine trading and compensation administration.

Company communications also reiterated MicroStrategy’s positioning as a bitcoin-focused corporate treasury holder while continuing to operate an enterprise analytics software business. The split announcement referenced these strategic aspects to explain why the company’s share price had outpaced prior ranges and why management concluded a split was appropriate.

Market reaction and immediate effects

Did MicroStrategy do a stock split, and how did the market react? News coverage contemporaneous with the announcement reported modest immediate market responses. Major outlets noted small intraday or pre-market gains at the time of the July 11, 2024 announcement; reporting characterized the move as a typical corporate action designed to increase accessibility rather than to alter fundamentals.

It is important to emphasize that a forward stock split does not change the company’s market capitalization—shares multiply and price per share adjusts down proportionally—so the split by itself does not alter economic ownership. However, splits can affect investor psychology and retail participation. Some retail investors find lower nominal per-share prices more approachable, and brokers may make it simpler for customers to buy whole shares. Splits can also increase the potential pool of small-lot investors, which can, over time, influence liquidity and trading patterns.

Operationally, brokers and custodians process splits on different timelines. While public filings set the official record and distribution dates, individual brokerage platforms may take time (sometimes up to about 24 hours) to reflect the adjusted share counts and split-adjusted prices in customer account views.

Historical stock-split history

MicroStrategy’s 2024 forward split is the most recent in a short history of prior splits and reverse splits. Key historical corporate actions include:

• 2-for-1 forward split on January 27, 2000.
• 1-for-10 reverse split on July 31, 2002.
• 10-for-1 forward split effective August 8, 2024.

Cumulative split adjustments affect how long-term share counts and price series are reported. For investors holding across multiple corporate actions, historical positions must be adjusted to reflect the combined effect of splits and reverse splits. For example, a share held before the 2000 split, the 2002 reverse split, and the 2024 split would be adjusted multiplicatively to compute the present-day share equivalent. Historical price charts and company filings typically report split-adjusted prices so that comparisons over time remain consistent.

Impact on shareholders and corporate governance

Mechanically, the 10-for-1 split increased the number of shares outstanding by a factor of ten and lowered the per-share price proportionally. The split did not change voting rights per share in any meaningful way: each Class A and Class B share retained the same terms and relative voting power after the split as before. As the company applied the split equally across both share classes, shareholders’ percentage ownership and governance stakes remained unchanged.

Practical considerations for shareholders included:

• Fractional shares: Some brokers may cash out fractional shares resulting from the distribution or hold fractional interest depending on their policies.
• Account display: Brokerage account statements and custody systems may take time to show the new share counts.
• Employee equity plans: The split can simplify administration by lowering per-share exercise prices or making awards appear more granular.
• Taxes: The split itself is generally tax-free in the U.S. as a stock dividend for recordkeeping purposes, but investors should consult qualified tax professionals for personal tax consequences.

Broader significance and commentary

Within the market context of 2024, several prominent issuers used forward splits to lower per-share prices and attempt to broaden retail participation. MicroStrategy’s split was commonly discussed alongside those corporate actions as part of a broader trend. Commentators and analysts noted that MicroStrategy’s stock behavior is influenced by multiple factors—including bitcoin price movements, corporate software performance, and investor sentiment about corporate bitcoin adoption—so the split’s ultimate effect on price dynamics depends on these interacting elements.

Potential implications of the split include increased retail interest and potentially higher day-to-day liquidity from smaller-lot traders. However, large institutional holders, index-weighting methodologies, and ETF eligibility rules are driven by market-cap and listing status rather than nominal per-share price, so the split itself typically does not change index inclusion rules. Analysts covering the stock highlighted the importance of monitoring bitcoin holdings and operational performance in tandem with any behavioral changes following the split.

See also

• MicroStrategy (company)
• Stock split
• Forward stock split
• Reverse stock split
• Corporate bitcoin holdings

FAQ

Q: Did MicroStrategy do a stock split?

A: Yes. Did MicroStrategy do a stock split? The board announced a 10-for-1 forward split on July 11, 2024, effective for trading on August 8, 2024.

Q: What exactly happened to my shares when MicroStrategy split?

If you owned MicroStrategy shares at the record date, you received nine additional shares for each share you held (a 10-for-1 split). Your percentage ownership and voting power did not change. Brokerage platforms should automatically reflect the adjusted share count, though display timing varies.

Q: Will a split change MicroStrategy’s market capitalization?

No. The split changes the number of shares outstanding and the per-share price proportionally, leaving the market capitalization unchanged immediately after the split.

Q: How soon did the shares trade on a split-adjusted basis?

The new shares were distributed after the market close on August 7, 2024, and MicroStrategy began trading on a split-adjusted basis at the market open on August 8, 2024.

Q: Where can I trade MicroStrategy shares and manage crypto exposure?

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References

As of July 11, 2024, according to MicroStrategy’s press release and SEC filing, the board declared a 10-for-1 forward stock split. Major contemporaneous coverage included Reuters and CNBC reporting on the July 11 announcement. Coverage of the split’s trading mechanics and effective dates appeared in market news around August 7–8, 2024 from Nasdaq and other market-data outlets. Historical split data can be cross-checked on financial data archives and company filings.

• MicroStrategy press release / SEC exhibit — announced July 11, 2024 (company disclosure of 10-for-1 split and key dates).
• Reuters coverage — reported July 11, 2024 (market reaction and announcement reporting).
• CNBC coverage — reported July 11, 2024 (announcement summary and context).
• Nasdaq / market news (Aug 7–8, 2024) — reporting on distribution timing and first split-adjusted trading day.
• Market-data and historical pages (Investing.com, Macrotrends, CompaniesMarketCap) — references for historical split and reverse-split records.
• Yahoo Finance — summary pages offering historical price adjustments and split history.

Sources cited above provide the official dates and mechanics. For regulatory detail, consult MicroStrategy’s SEC filings filed in connection with the July 11, 2024 declaration.

Further exploration: If you want to track MicroStrategy’s stock or bitcoin exposure, use reliable market-data pages and official filings. To explore trading or custody options aligned with this content, learn more about Bitget’s trading services and Bitget Wallet for secure Web3 access.