MicroStrategy’s Michael Saylor Sells More Shares to Invest in Bitcoin
Michael Saylor, co-founder of MicroStrategy Inc., made a series of stock sales that led to the recent approval by the U.S. Securities and Exchange Commission (SEC) of exchange-traded funds that invest directly in Bitcoin.
MicroStrategy Sells MSTR just Ahead of ETF Approval
Saylor sold between 3,882 and 5,000 shares on select days between Jan. 2 and Jan. 10, coinciding with the SEC’s announcement, according to data compiled by Bloomberg. The transactions are estimated to have earned Saylor more than $20 million; This means Saylor has sold company shares for the first time in nearly 12 years. This development comes as the company has already sold $216 million worth of MSTR shares last week.
A spokesperson for MicroStrategy confirmed Michael Saylor’s recent stock sales and explained that these transactions were part of a pre-existing scheme disclosed in a filing last year. The spokesperson emphasized that these sales are unrelated to the recent approval of Bitcoin exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission. The planned sales, which include up to 5,000 shares per day, are planned for January 2, 2024 through April 26, 2024, with a total of up to 400,000 shares planned to be sold during this period.
MicroStrategy, a leading business intelligence firm with significant Bitcoin holdings, suffered significant losses during the previous crypto winter. The company had to write off a significant amount of losses due to the decline in the market at that time.
However, in a remarkable development, the value of MicroStrategy’s existing Bitcoin assets increased to approximately $8.3 billion. This represents a significant paper gain of approximately 40%, highlighting the company’s resilience and recovery in the crypto market.
MSTR Stock Under Pressure
There has been a 23 percent decrease in the stocks of MicroStrategy, one of the important players in the business intelligence industry, since the beginning of the year. The decline is due in part to concerns over the launch of exchange-traded funds (ETFs), which could potentially reduce the attractiveness of company shares as investments.
MicroStrategy, headquartered in Tysons Corner, Virginia, has long been viewed as a proxy for Bitcoin, given that it has had significant amounts of cryptocurrencies on its balance sheet for several years. Prior to the recent approval of a dozen spot Bitcoin ETFs by the U.S. Securities and Exchange Commission (SEC), MicroStrategy was a primary avenue for investors seeking indirect exposure to Bitcoin. The emergence of alternative options through ETFs has brought new dynamics to the market.
However, MicroStrategy chief Michael Saylor stated that the spot Bitcoin ETF launch will not negatively impact MicroStrategy stock price.
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