After the bull run in Bitcoin, insiders sold MicroStrategy stock

MicroStrategy CEO Michael Saylor, a well-known Bitcoin bull, has not sold any company stock since 2012.
MicroStrategy, a Virginia-based enterprise software company, has caught the attention of crypto news outlets and financial news outlets alike. Its CEO, Phong Le, has decided to go all-in on Bitcoin starting in 2020. Some reporters speculate that the company has become more of an investment vehicle for Bitcoin (BTC). According to recent filings with the United States Securities and Exchange Commission, some of the company’s top-level executives have resigned stock and opted to sell their options. Bloomberg reports that Lang exercised 10,000 options on August 26th and then sold all converted shares for $7.1 million. Phong, on the other hand, exercised 20,000 options between August 2 and 6, then sold the shares for just over $7.3 million. Each has kept close to 20,000 options. The CEO Michael Saylor has not sold shares since 2012, but he did transfer 50,000 shares of Class-A company stock to Alcantara LLC this January. Matt Maley, Miller Tabak + Co.’s chief market strategist, suggested that the decision could be indicative of their concerns over Saylor’s corporate strategy, and his commitment to tie the company’s fate closely to Bitcoin. Senior executives don’t sell stock if they believe it will go higher. It’s just an ugly sign, no matter how you slice. MicroStrategy had approximately 105,085 BTC as of June 30, 2021. Saylor doubled down on his crypto strategy in July, pledging to continue to accumulate more BTC. In June, the firm announced a $400 million debt raise to increase its Bitcoin treasury holdings. In August, MicroStrategy added 3,907 BTC to its holdings at a cost $2.918 billion. Ed Moya, Oanda’s senior market analyst, said that Phong’s and Lang’s selloffs will not deter MicroStrategy investors that share Saylors’ commitment to Bitcoin. He stated that Saylor’s “relentless support” for Bitcoin has made the company a cryptocurrency trading company and not necessarily a bet in the company’s services.

Relevant news

Leave a Reply