January 14, 2024 at 10:01 am | 2 min read
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MicroStrategy Inc. (NASDAQ:MSTR) Founding partner Michael Saylor It recently took the surprising step of selling a large number of company shares ahead of the US Securities and Exchange Commission’s approval of ETFs focused on… Bitcoin (Crypto: Bitcoin).
Saylor, CEO of MicroStrategy, sold between 3,882 and 5,000 shares between January 2 and 10, coinciding with the SEC announcement on Bitcoin ETFs. The unexpected move reportedly added more than $20 million to Saylor’s portfolio.
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This is the first sale of Saylor shares in nearly 12 years, Bloomberg reported.
A MicroStrategy spokesperson explained to the outlet that the sale is part of a pre-existing plan disclosed in a filing from the previous year and is completely separate from the ETF’s recent approvals.
The plan set out the intention to sell up to 5,000 shares per day from January 2 to April 26, with the goal of liquidating up to 400,000 shares during this period.
Read also: The difficult road ahead for Bitcoin: Analyst warns of post-ETF price decline
Saylor’s move coincided with a 23% decline in MicroStrategy shares since the beginning of the year.
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This decline is partly due to concerns that the introduction of Bitcoin ETFs may make the company’s shares less attractive to investors. The company has long been considered a steward of Bitcoin due to its large holdings of the cryptocurrency on its balance sheet.
MicroStrategy began its investments in Bitcoin in 2020, citing the need to diversify and mitigate inflation risks on its cash holdings.
However, during the previous downturn in the cryptocurrency market, the company was forced to absorb significant write-downs due to its Bitcoin holdings.
At present, MicroStrategy’s Bitcoin holdings are valued at around $8.3 billion, reflecting significant paper gains of around 40%.
With the debut of ETFs tracking Bitcoin, the cryptocurrency market is experiencing a boom, with Bitcoin’s value rising nearly 3% this year and briefly reaching the $49,000 mark for the first time since December 2021.
Read Now: Here’s Why Michael Saylor Says FTX Collapse and Other Cryptocurrency Scandals Will Benefit Bitcoin
This content was produced in part with the help of artificial intelligence tools and was reviewed and published by Benzinga editors.
Image: Shutterstock
Options 101: A Beginner’s Guide
Want to become an options master? In his free report, options expert Nic Chahine will give you access to his four beginner-proof tips, the secret to making 411% gains with options, and his time-tested “plan” for success. Get your free copy of Options 101: A Beginner’s Guide ASAP.
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