Michael Saylor, co-founder of MicroStrategy, has sold a series of company shares ahead of the U.S. Securities and Exchange Commission’s (SEC) approval of Bitcoin exchange-traded funds (ETFs). It is speculated that Saylor will continue to sell more MicroStrategy shares to fund his personal Bitcoin (BTC) investments.
According to Bloomberg, Saylor sold between 3,882 and 5,000 MicroStrategy shares on specific days from January 2 to January 10, coinciding with the SEC’s announcement. These transactions are estimated to have yielded over $20 million, marking Saylor’s first company stock sale in approximately 12 years. This coincided with the company’s sale of $216 million worth of MicroStrategy shares last week.
A MicroStrategy spokesperson confirmed Saylor’s recent share sales, stating they were part of a pre-existing plan disclosed in a filing with the SEC last year. The spokesperson emphasized that these sales are not related to the SEC’s approval of spot Bitcoin ETFs. Planned sales allow for up to 5,000 shares daily, targeting a total of 400,000 shares to be sold between January 2, 2024, and April 26, 2024.
MicroStrategy, a significant holder of Bitcoin assets, faced substantial losses during the previous crypto winter due to the market downturn. However, the recent surge in the crypto market has increased the value of MicroStrategy’s Bitcoin holdings to approximately $8.3 billion, putting the company on profitable grounds with a 40% paper gain on its BTC investments.
MicroStrategy’s shares have fallen by 23% since the beginning of the year, partly due to the approval of spot Bitcoin ETFs, which could diminish the appeal of the company’s shares as an investment option. Based in Tysons Corner, MicroStrategy has long been viewed as a proxy for Bitcoin due to its substantial BTC holdings, but the SEC’s recent green light for 11 spot Bitcoin ETFs may change this perception. Saylor does not expect the SEC’s approval of spot Bitcoin ETFs to negatively impact MicroStrategy shares.