MicroStrategy’s executive chairman, Michael Saylor, has embarked on a significant financial move, beginning the process of selling $216 million worth of his shares in the firm.
This strategic decision is in line with Saylor’s intention to address his obligations while increasing his holdings in Bitcoin, a cryptocurrency he has been particularly bullish on. Saylor disclosed this plan in a filing with the United States Securities and Exchange Commission (SEC) in January 2024.
Michael Saylor’s stock options sale underway
In the SEC filing, it was revealed that Michael Saylor had commenced the sale of his 315,000 stock options awards, which were initially granted to him in April 2014. These stock options are set to expire on April 30, 2024. Saylor initiated this process on January 2 by selling his first tranche of 5,000 shares.
During MicroStrategy’s third-quarter earnings call on November 2, 2023, Saylor articulated his plan to sell 5,000 MSTR shares daily for the next four months. He explicitly stated that the proceeds from these sales would serve the dual purpose of addressing his “personal obligations” and expanding his personal Bitcoin holdings.
Despite these personal sales, Saylor emphasized that his stake in the company’s equity remains “significant.”
A November 1 Q-10 filing with the SEC revealed that Saylor is authorized to sell a maximum of 400,000 shares of his vested options between January 2 and April 26, 2024. This regulatory constraint outlines the timeframe within which Saylor can execute his planned stock sales.
MicroStrategy’s remarkable performance
MicroStrategy has demonstrated remarkable performance over the past year, significantly outperforming Bitcoin itself. While Bitcoin saw a substantial 170% rally from the beginning of the previous year, MicroStrategy’s stock price surged by an impressive 411% during the same period, according to TradingView data. This exceptional performance has garnered attention and admiration from investors and market observers.
MicroStrategy made a substantial investment in Bitcoin by purchasing an additional 14,620 BTC for $615 million. This acquisition boosted MicroStrategy’s total Bitcoin holdings to an impressive 189,150 BTC, which is currently valued at approximately $8.5 billion based on current market prices. The company’s continued accumulation of Bitcoin has positioned it as one of the most significant institutional holders of the cryptocurrency.