MicroStrategy’s Michael Saylor Sells 5,000 Shares of MSTR Stock to Invest in Bitcoin

MicroStrategy Inc. co-founder Michael Saylor has been involved in a series of stock sales ahead of the U.S. Securities and Exchange Commission’s (SEC) recent approval of an exchange-traded fund that invests directly in bitcoin.

MicroStrategy Sells MSTR Ahead of ETF Approval

According to data compiled by Bloomberg, Saylor sold between 3,882 and 5,000 shares on specific dates between Jan. 2 and 10, consistent with the SEC announcement. The trades are estimated to have brought Saylor more than $20 million, his first sale of company stock in nearly 12 years. The development comes as the company sold $216 million worth of MSTR stock last week.

A spokesperson for MicroStrategy has verified Michael Saylor’s recent stock sales and clarified that these transactions are part of an existing program disclosed in a filing made last year. The spokesperson emphasized that the sales are not related to the SEC’s recent approval of a bitcoin exchange-traded fund (ETF). The planned sales are for up to 5,000 shares per day and are scheduled to take place between January 2, 2024 and April 26, 2024, with up to 400,000 shares planned to be sold in total during this period.

MicroStrategy, a leading business intelligence firm with large holdings in Bitcoin, suffered significant losses during the last cryptocurrency winter. Due to the market downturn at the time, the company had to take significant write-downs. Jasminer

However, in a stunning turnaround, the value of MicroStrategy’s current bitcoin holdings has skyrocketed to approximately $8.3 billion. This represents a significant book gain of around 40%, highlighting the company’s resilience and recovery in the crypto market.

MSTR Stock Under Pressure  Bitcoin Miner

Shares of MicroStrategy, a well-known name in business intelligence, have fallen 23% since the beginning of the year. The decline is partly due to concerns raised by the debut of exchange-traded funds (ETFs), which could diminish the appeal of the company’s stock as an investment.

Tysons Corner, Virginia-based MicroStrategy has long been viewed as a proxy for bitcoin, as the company has held large amounts of the currency on its balance sheet for years. MicroStrategy was the main avenue for investors looking to invest indirectly in bitcoin before the Securities and Exchange Commission (SEC) recently approved more than a dozen spot bitcoin ETFs, and the emergence of alternative options to ETFs has brought new momentum to the market.

However, MicroStrategy CEO Michael Saylor says the launch of spot bitcoin ETFs won’t have a negative impact on MicroStrategy’s stock price.