Michael Saylor, MicroStrategy’s executive chairman and co-founder, reportedly plans to sell 315,000 shares for $216 million. He also considers increasing his Bitcoin holdings, indicating his faith in BTC. This plan was initially mentioned in MicroStrategy’s Q3 2023 earnings call by Saylor.
Expanding Bitcoin Holdings
During the November 2023 call, Saylor, one of the most notable BTC advocates in the crypto space, revealed his decision regarding a 2014 stock option where he owns 400,000 shares. As the stock option expires next April, Saylor will leverage this event to update his filing with the US Securities and Exchange Commission (SEC).
In addition, Saylor revealed that he would take a $1 salary from the company and sacrifice cash bonuses for the next ten years. By implementing this sell-off option, he intends to settle all his financial obligations and expand his Bitcoin holdings.
The MicroStrategy founder further explained that he would sell approximately 5,000 personal shares daily from January 2, 2024, to April 25, 2024. However, the proposal’s acceptance depends upon meeting specific pricing criteria.
Saylor pointed out that he has an outlined trading plan to execute this strategy over the next four months. Besides the financial gains, the approach shows his commitment to MicroStrategy’s growth for the long haul as he continues to acquire Bitcoins.
The SEC’s Authorization
As stated in the Q-10 application submitted to the US securities regulator on November 1, 2023, the MicroStrategy chairman can sell close to 400,000 shares from his options between January 2 and April 26, 2024. Saylor maintains a “significant” share in MicroStrategy, further proving his confidence in the business establishment.
It is worth noting that Saylor’s strategy to sell the shares of a firm he co-founded to buy BTC isn’t against the law. Instead, it is frequently considered a method for diversifying a shareholder’s portfolio and lowering risk. Nevertheless, Saylor still holds a sizeable share in MicroStrategy.
MSTR Stocks Vs. Bitcoin
In 2023, MicroStrategy (MSTR) stock price increased by more than 375%. Over the last five days, this spike has persisted, with MSTR closing at $685.15 on Tuesday, representing a 12.43% increase.
Furthermore, the company’s daring Bitcoin investment strategy has dramatically increased MSTR’s value, solidifying its position as the biggest publicly listed holder of this leading digital asset. Comparatively, Bitcoin’s performance was worse than MicroStrategy’s in the past year, recording only a 165% increase.
Recall that MicroStrategy acquired 14,620 BTC, worth $615 million, on December 27, 2023, adding to its already considerable Bitcoin reserves. Thus, its total Bitcoin holdings now stand at 189,150 BTC, worth almost $8.55 billion at the current market price. According to current CoinGecko data, Bitcoin trades at $42,907, down 5.43% in the last 24 hours.