MicroStrategy’s co-founder Michael Saylor conducted a series of stock sales until the recent approval by the U.S. Securities and Exchange Commission (SEC) for exchange-traded funds (ETFs) that directly invest in Bitcoin. It is speculated that Saylor will sell more MicroStrategy shares and use the funds from these sales for personal BTC investments.
MicroStrategy Shares Sold Just Before ETF Approval
According to data compiled by Bloomberg, Saylor sold between 3,882 and 5,000 MicroStrategy shares on specific days between January 2 and January 10, coinciding with the SEC’s announcement. These transactions are estimated to have yielded Saylor over $20 million, indicating that this is the first time Saylor has sold company shares in approximately 12 years. This development coincided with the company’s sale of MicroStrategy shares worth $216 million last week.
A MicroStrategy spokesperson confirmed Saylor’s recent stock sales and stated that these transactions were part of a pre-existing plan disclosed in an application to the SEC last year. The spokesperson also emphasized that these sales had no connection to the SEC’s approvals for spot Bitcoin ETFs. The planned sales, which allow for up to 5,000 shares to be sold daily, will be carried out between January 2, 2024, and April 26, 2024, with a total of 400,000 MicroStrategy shares expected to be sold during this period.
MicroStrategy, a software company with significant Bitcoin holdings, faced substantial losses during the previous crypto winter. The company suffered greatly due to the downturn in the cryptocurrency market. With the cryptocurrency market’s notable recovery, the value of MicroStrategy’s Bitcoin assets rose to approximately $8.3 billion, helping the company to become profitable. The company is currently 40% in profit on paper from its BTC investments.
MSTR Shares Under Pressure
Shares of MicroStrategy, a leading player in the software sector, have fallen by 23% since the beginning of the year. This decline is partly due to the approval of spot Bitcoin ETFs, which could reduce the appeal of the company’s shares as an investment option.
Based in Tysons Corner, MicroStrategy has long been seen as a proxy for Bitcoin due to holding a high amount of BTC on its balance sheet, but this changed with the SEC’s green light for 11 spot Bitcoin ETFs on January 10. Saylor does not expect the SEC’s approval of spot Bitcoin ETFs to negatively affect MicroStrategy shares.
