MicroStrategy’s Bitcoin Bet Unlocks Major Shareholder Value, MSTR $1000
Business intelligence company Microstrategy (MSTR) exemplifies how a company can change its fortunes by investing heavily in Bitcoin. On Wednesday, February 28, Microstrategy (MSTR) stock price closed at $962.95, up 10% for the second day in a row. In aftermarket hours, MSTR stock rose another 2.85%, approaching $1,000.
Bitcoin Fuel Gains MicroStrategy Share Price
The massive back-to-back gains in MicroStrategy share price come amid a strong rally in the price of Bitcoin, which rose as high as $64,000 on Wednesday. On the weekly chart, Bitcoin price is up 20% as of now.
On the other hand, Microstrategy stock continues to outperform Bitcoin, gaining 40% in the last five trading sessions. As of Wednesday’s close, the MSTR share price had outperformed Bitcoin’s 168% gain by a staggering 273%.
It’s clear that MicroStrategy has managed to create tremendous value for its shareholders through its Bitcoin bet. In a note published Tuesday, analysts at TD Cowen expressed their expectation that Bitcoin transactions will benefit shareholders over time. They noted:
Earlier this week, just before the 20% Bitcoin price rally was triggered, MicroStrategy purchased an additional 3,000 Bitcoins worth $155 million. With the recent rise in BTC price to $64,000, MicroStrategy’s unrealized profit from Bitcoin holdings exceeded $5.7 billion.
Are Insiders Selling MSTR Shares?
Michael Saylor, MicroStrategy’s chairman and largest investor, owns a 12% stake in the company. He also revealed that he personally owned 17,732 Bitcoins in 2020. When those assets are combined, Saylor’s wealth has increased by nearly $700 million since Sunday.
According to a recent SEC filing dated February 26, 2024, Michael Saylor, Chief Executive Officer and 10% Owner of MicroStrategy Inc (NASDAQ:MSTR), sold 5,000 shares of the company.
The shares were sold at a price of $765.67 per share, yielding a total of $3,828,350 for the transaction. This sale adds to Saylor’s total sales of 165,000 shares last year, with no purchases recorded during the same period.
A look at MicroStrategy Inc.’s insider transaction history shows a consistent selling pattern, with 62 insider purchases in the last year.
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Bhushan is a FinTech enthusiast and has a good ability to understand financial markets. His interest in economics and finance draws his attention to the emerging Blockchain Technology and Cryptocurrency markets. He is in a constant learning process and motivates himself by sharing the knowledge he has acquired. In her spare time, she reads thriller novels and sometimes explores her culinary skills.
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