will microstrategy stock split explained

MicroStrategy stock split

As readers ask whether will microstrategy stock split again or what the recent split means, this article gives a clear, factual guide. It summarizes MicroStrategy’s 2024 10-for-1 forward split, explains the mechanics and corporate rationale for splits, reviews prior split history, examines market reaction, and explains how MicroStrategy’s large Bitcoin holdings interact with split-related investor behavior. By the end you’ll understand the operational details (dates, share classes, broker handling), likely effects for shareholders, and where to check authoritative filings and market data.

As of July 11, 2024, according to MicroStrategy’s press release, the board approved a 10-for-1 forward stock split to make shares more accessible to investors and employees.

Note: this article is informational and not investment advice. For trading access and custody solutions, consider Bitget and Bitget Wallet for buying, storing and managing digital assets.

Background

MicroStrategy Incorporated (ticker: MSTR) is a Nasdaq-listed company best known for enterprise analytics and business intelligence software. Over the past several years the company gained outsized public attention because its executive leadership adopted a high-profile strategy of acquiring and holding Bitcoin on the corporate balance sheet.

That strategy—significant corporate Bitcoin accumulation—shifted investor focus from software revenue and analytics customers toward the company’s Bitcoin exposure. As a result, MicroStrategy’s share price began to track Bitcoin price moves more closely than many traditional enterprise-software peers.

Because of the company’s dual identity (enterprise software firm and a major corporate Bitcoin holder), corporate actions like stock splits draw interest both from standard equity investors and from crypto-focused participants asking how such actions affect accessibility and trading of a Bitcoin-correlated equity.

Stock split — concept and purpose

A stock split is a corporate action that increases (forward split) or decreases (reverse split) the number of outstanding shares by issuing additional shares to existing shareholders in a fixed ratio.

• Forward split: increases the number of shares while proportionally lowering the per-share price. Common ratios include 2-for-1, 3-for-1, and 10-for-1.
• Reverse split: reduces the number of shares and increases the per-share price, often used to meet listing requirements or consolidate an excessively low share price.

Important principles:

• Market capitalization does not change solely because of a split. A 10-for-1 forward split multiplies shares by ten and divides the per-share price by ten; the company’s total equity value remains the same immediately after the split.
• A shareholder’s percentage ownership and economic interest remain unchanged after a properly executed split.

Why companies pursue forward splits (usual corporate reasons):

• Accessibility: a lower per-share price can make shares more affordable for small retail investors who buy whole shares.
• Liquidity: more tradable shares at lower nominal prices can encourage tighter bid-ask spreads and more frequent trading.
• Employee compensation: lower per-share prices make share-based compensation and employee stock purchase plans easier to implement and understand.
• Options market: splitting shares can change option contract specifications and may broaden participation in derivatives markets.

However, splits are often described as “cosmetic.” They do not change a company’s fundamentals, revenue, profit margins, or enterprise value. Splits can generate media attention and renewed retail interest, which sometimes influences short-term price behavior.

MicroStrategy’s 2024 10-for-1 stock split

On July 11, 2024, MicroStrategy’s board declared a 10-for-1 forward stock split. The company stated the split was intended to make its shares more accessible to individual investors and employees.

• As of July 11, 2024, according to MicroStrategy’s press release, the board announced the split and outlined record and distribution dates.
• Record date: August 1, 2024.
• Distribution date / payable after close: August 7, 2024.
• First trading day on a split-adjusted basis: August 8, 2024.

MicroStrategy said the split would apply to both classes of common stock and would not change voting rights or other shareholder rights. The company emphasized the split was aimed at accessibility and continuity for participants who trade or hold MSTR stock.

Key dates and mechanics

The main dates investors needed to know for the 2024 split were:

• Declaration date (board approval announced): July 11, 2024.
• Record date (who is eligible to receive the additional shares): August 1, 2024.
• Distribution date (company issues the additional shares): after market close on August 7, 2024.
• First trading day split-adjusted (new per-share price reflects 10-for-1 split): August 8, 2024.

How shares were delivered and recorded:

• Shareholders of record on the record date were entitled to receive nine additional shares for each one share held, resulting in ten total shares for each pre-split share (10-for-1).
• In practice, most retail shareholders hold stock through broker-dealers. Brokerage firms handled the split by updating account positions, automatically crediting additional shares for eligible holdings, and showing the new per-share prices on a split-adjusted basis.
• For shareholders holding paper certificates (uncommon for Nasdaq issuers), procedures required submitting certificates per company instructions or working with transfer agents to receive new certificates adjusted for the split.

Brokerage notes:

• Some brokerages may show split adjustments slightly earlier in account interfaces or as pending entries before the formal distribution date; cash-in-lieu or fractional share rules vary by broker.
• Fractional shares: if a holder did not end up with an integer multiple of the split ratio, brokerages typically handle fractional entitlements according to their practices—either by crediting cash for the fractional portion or pooling fractions for sale and distributing proceeds.

Affected share classes

The 10-for-1 forward split applied to both Class A and Class B common stock. MicroStrategy made clear the split did not change the relative voting power, rights, or preferences tied to each class. The split multiplied the number of outstanding shares of each class proportionally.

Share-class implications:

• Class A shares (publicly traded) were split on the 10-for-1 basis, giving public investors more shares at lower per-share prices.
• Class B shares (typically held by insiders with enhanced voting rights) were also adjusted so that voting allocations and ownership percentages remained intact on a proportional basis.

Historical stock-split history for MicroStrategy

MicroStrategy’s split history includes several corporate actions across decades. Notable events:

• January 2000 — 2-for-1 forward split: During the dot-com era, MicroStrategy executed a 2-for-1 forward split as its stock price rose along with many technology peers.
• July 2002 — 1-for-10 reverse split: In the aftermath of the early-2000s downturn and to meet exchange listing standards, MicroStrategy carried out a 1-for-10 reverse split (consolidation) to raise the per-share trading price.
• August 2024 — 10-for-1 forward split: The board-approved split intended to improve accessibility and participation by smaller investors.

Context for past splits:

• The early 2000s split activity occurred during a period of volatility for technology stocks. The forward split in 2000 reflected market enthusiasm; the subsequent reverse split in 2002 was part of restructuring and listing-maintenance efforts following price declines.
• The 2024 forward split occurred in a different corporate environment: MicroStrategy’s identity as a major corporate holder of Bitcoin contributed to heightened interest and a desire to make shares more affordable to a broader investor base.

Market reaction and analysis

Media and investor reaction around the 2024 announcement mixed factual reporting with interpretive commentary. Typical coverage patterns included:

• Headlines noting the board approval and dates, emphasizing the 10-for-1 ratio and the stated objective of improving accessibility for investors and employees.
• Short-term price response: stock price movements around the announcement reflected a combination of split-related news flow, Bitcoin price movement, and general market sentiment. Because MicroStrategy’s shares tend to correlate with Bitcoin price, disentangling split impact from crypto-driven moves requires careful analysis.

Analyst commentary summarized common views:

• Splits are cosmetic: many analysts emphasized that the split does not alter MicroStrategy’s business fundamentals or its Bitcoin holdings. The company’s earnings, cash flow, and Bitcoin reserve remained the core drivers of intrinsic value.
• Marketing and retail interest: other analysts noted forward splits often generate renewed media coverage and can lower nominal barriers for small investors. This effect can temporarily increase retail flows and trading volume, sometimes supporting short-term price uplift.
• Varied outcomes: studies show forward splits can be associated with short-term positive returns, but long-term returns depend on company fundamentals and market conditions. For companies whose shares are driven by an external underlying (for MSTR, Bitcoin), the split’s long-term significance may be limited.

Relationship to Bitcoin exposure

MicroStrategy’s share performance is strongly correlated with Bitcoin price movements because the company accumulates and holds Bitcoin on its balance sheet. Analysts and market commentators often argue that Bitcoin price is a larger, more persistent driver of MSTR returns than corporate actions like stock splits.

Key points about the relationship:

• If Bitcoin rallies strongly, MSTR often outperforms because the market prices the company both as a software company and as a proxy for corporate Bitcoin exposure.
• Conversely, when Bitcoin declines, MSTR tends to experience amplified downside due to leverage-like effects in market pricing and investor positioning.
• A split does not change the company’s Bitcoin holdings, exposure magnitude, or the balance-sheet treatment of those holdings. Therefore, while a split can change accessibility, it does not change how MicroStrategy’s fortunes relate to BTC price.

As of the split announcement, market participants watching BTC levels remained a primary determinant of MSTR interest. For example, if a surge in retail interest after a split coincides with rising BTC prices, the combined forces can magnify demand for MSTR shares.

Effects on shareholders and trading

Practical effects of the 10-for-1 forward split for shareholders included:

• More shares: shareholders of record on the record date received nine additional shares for each share owned, resulting in ten shares for each pre-split share.
• Adjusted per-share price: the per-share price was approximately one-tenth of the pre-split price on the first split-adjusted trading day, subject to market supply and demand.
• Ownership percentage: each shareholder’s proportional ownership of the company and voting rights remained unchanged after the split.

Liquidity and accessibility:

• A lower per-share price can make whole-share purchases more feasible for small retail investors. That can broaden the investor base and potentially increase intraday liquidity.
• The split may also affect options trading. After a split, options contract multipliers and strike prices are adjusted according to standard option exchange procedures so contract economics remain consistent.

Short-term trading considerations:

• Increased retail participation around split dates can lead to higher trading volumes and larger bid-ask spreads in the short term.
• Traders should factor in possible volatility around the ex-split date and the first split-adjusted trading day, but remember that price dynamics are still driven by supply/demand, news, and in MicroStrategy’s case, Bitcoin price movements.

Regulatory, accounting, and listing considerations

Corporate governance and regulatory mechanics for stock splits are well-established:

• Board approval: the company’s board must authorize a split and disclose the details (ratio, record date, distribution date).
• Filings and disclosures: public companies typically file required notices with regulators and issue a press release describing the split’s mechanics and dates.
• Transfer agent handling: the transfer agent updates the company’s books and records to reflect the increased share count and handles certificate exchanges where necessary.
• Listing implications: splits are typically permitted under standard Nasdaq rules. A forward split usually helps maintain or broaden the trading profile; a reverse split can be used to meet minimum price criteria for continued listing.

Accounting impact:

• A split does not change total shareholders’ equity or retained earnings. It only reallocates the number of shares and the per-share amounts reported in earnings per share (EPS) calculations are adjusted on a retrospective basis for comparability.

Prospects for future splits

Will microstrategy stock split again is an understandable question for investors tracking share price levels and accessibility. Factors that might influence future split decisions include:

• Absolute share-price level: if the per-share price rises to levels management believes inhibit retail participation, another forward split could be considered.
• Strategy and investor-access goals: management may opt for future splits if the goal is to broaden retail access or to keep option and compensation plans workable.
• Market communication: the company may weigh publicity and investor-relation benefits against the administrative cost and minimal fundamental impact of a split.

Analyst views generally state that future splits would be contingent on share-price trajectory and investor access goals. Because splits do not alter fundamentals, a future decision would likely be tactical rather than strategic.

Market-data and verification notes

When tracking splits and their effects, investors should consult primary-company materials and reliable market-data sources.

• Primary source for split: MicroStrategy press release and SEC filings contain authoritative dates and mechanics. As of July 11, 2024, MicroStrategy published a press release announcing the 10-for-1 forward split.
• Exchange and data pages: Nasdaq and major market-data providers publish split-adjusted historical prices and volume. These pages help verify pre- and post-split pricing and trading volume.

Practical tip: when reviewing historical performance or calculating returns, always use split-adjusted price series to avoid distorted percentage-change calculations.

Market reaction case study (short-term)

In the days surrounding the 2024 split announcement and the first split-adjusted trading day, typical observable market patterns included:

• Increased press coverage and social-media mentions highlighting the split ratio and the first split-adjusted trading day.
• Elevated trading volume on the first few trading days after the split, as retail investors who preferred lower nominal prices entered or rebalanced positions.
• Price movement influenced by concurrent Bitcoin volatility. If BTC moved sharply up or down during that window, MSTR’s price response often reflected BTC’s direction more than split mechanics.

This pattern underscores the practical reality: while the split changes share counts and per-share prices, external factors—especially Bitcoin price for MicroStrategy—are often larger determinants of share performance in both the short and medium term.

Frequently asked questions (FAQ)

Q: Does a split change my ownership percentage in MicroStrategy?

A: No. A properly executed forward or reverse split adjusts share counts and per-share prices but does not change any shareholder’s proportional ownership or voting percentage.

Q: When did MicroStrategy split its stock in 2024?

A: The board declared a 10-for-1 forward split on July 11, 2024. The record date was August 1, 2024; distribution occurred after close on August 7, 2024; and trading began on a split-adjusted basis on August 8, 2024.

Q: Will microstrategy stock split again?

A: Whether will microstrategy stock split again depends on future share-price levels, management objectives related to investor accessibility, and board decisions. Splits are tactical corporate actions; a future forward split would likely be announced if leadership wants to make shares more affordable after significant price appreciation.

Q: Will a split change MicroStrategy’s exposure to Bitcoin?

A: No. A stock split does not change the company’s Bitcoin holdings. MicroStrategy’s exposure to Bitcoin remains a function of the number of bitcoins it holds and how markets price those holdings into the stock. The split changes only the number of outstanding shares and per-share price.

Q: How are brokerages handling split-adjusted holdings and fractional shares?

A: Most brokerages automatically credit additional shares to client accounts in accordance with the split ratio and handle fractional shares according to their published policies (for example, paying cash for fractions or aggregating fractions for sale). Check your brokerage’s communications for the exact treatment.

See also

• Stock split
• Forward stock split
• Reverse stock split
• MicroStrategy
• Bitcoin
• Corporate actions

References and further reading

• As of July 11, 2024, MicroStrategy press release: company announcement of 10-for-1 forward split (see company filings for full text and details). [Primary source: MicroStrategy press release and SEC filings]
• Market-data pages: Nasdaq and major financial data providers for split-adjusted price history and trading volume (use these sources to verify pre- and post-split prices).
• Media coverage and analysis: major financial news outlets reported on the split in July–August 2024, summarizing dates, rationale, and market reaction.

Note: for authoritative verification, consult the company’s press releases and SEC filings for exact holdings disclosures, split ratios, and official mechanics. This article summarizes and explains those matters in plain language.

Practical next steps and resources

• Track primary filings: check MicroStrategy’s SEC filings and official press releases for the most accurate data on corporate actions and Bitcoin holdings.
• Use split-adjusted charts: when measuring historical performance, use split-adjusted price series from reputable market-data providers to ensure comparable returns.
• If you trade or want custody for Bitcoin or related exposure, consider Bitget for trading services and Bitget Wallet for secure custody.

Further exploration: search company filings for up-to-date Bitcoin holdings disclosures and for any subsequent corporate actions that might affect share counts or capital structure.

Final notes

Investors often ask will microstrategy stock split and what it means for access to MSTR shares. The 2024 10-for-1 split made shares nominally cheaper per unit and aimed to increase accessibility, but it did not change ownership percentages or the company’s Bitcoin exposure. For actionable verification, always consult MicroStrategy’s press releases, SEC filings, and split-adjusted market-data series.

Explore more about corporate actions, split-adjusted data, and crypto-linked equities on Bitget’s educational resources. For custody and trading of digital assets, consider Bitget Wallet and Bitget’s platform services.

This article is informational only and does not constitute investment advice. Always verify primary sources and consult licensed professionals for investment decisions.