As per his share sale plan, Michael Saylor will be selling 5,000 MSTR stocks daily over the next four months to raise MicroStrategy’s Bitcoin holdings.
Michael Saylor, co-founder of MicroStrategy Inc (NASDAQ: MSTR), plans to sell approximately $216 million worth of stock in the software company, which has become the largest publicly-traded holder of Bitcoin. As per the filing disclosed on Tuesday, January 3, MicroStrategy had acquired 315,000 shares via stock options.
MicroStrategy had previously outlined a plan for Saylor to sell up to 400,000 shares between January 2 and April 26 of this year.
MicroStrategy’s shares have experienced a remarkable surge of 372% in the past year, reaching over $685 at the close of Tuesday, marking the highest level since December 2021. This surge is due to the overall rally in the value of Bitcoin, driven by expectations of the US approving the nation’s first spot Bitcoin exchange-traded funds.
MicroStrategy has significantly increased its total holdings of Bitcoin to over $8 billion, thanks to additional purchases made last month. Despite the anticipation of spot Bitcoin ETFs in the US, Saylor has consistently argued that MicroStrategy remains an appealing option for investors seeking exposure to Bitcoin.
MicroStrategy’s co-founder, Michael Saylor, has commenced the execution of his share sale plan, as indicated in the recent filing. The process began on January 2, with the initial sale involving 5,000 shares.
During MicroStrategy’s third-quarter earnings call on November 2, Saylor had previously outlined his intention to sell 5,000 MSTR shares daily over the next four months. This decision, he explained, is aimed at addressing “personal obligations” and increasing his personal holdings of Bitcoin.
In a statement during the earnings call, Saylor highlighted:
“Exercising this option will allow me to address personal obligations as well as acquire additional Bitcoin to my personal account.”
Despite these personal sales, he emphasized that his equity stake in the company remains “significant”.
MicroStrategy’s Bitcoin Holdings
Business intelligence firm MicroStrategy is the largest corporate holder of Bitcoins to date. On December 27, MicroStrategy continued its Bitcoin acquisition spree by purchasing an additional 14,620 BTC for a whopping $615 million. Following this acquisition, MicroStrategy’s total Bitcoin holdings reached an impressive 189,150 BTC, equivalent to approximately $8.5 billion at the current market prices.
Amidst Bitcoin’s recent price surge, hovering around $45,000 at the time of this report, industry observers anticipate the potential approval of a spot Bitcoin exchange-traded fund (ETF) by the US Securities and Exchange Commission in the coming weeks. Such approval is anticipated to broaden exposure to Bitcoin for both retail and institutional investors.
In a recent interview on Bloomberg TV, MicroStrategy’s CEO Michael Saylor expressed confidence that a physically-backed Bitcoin ETF does not pose a threat to the company. Saylor emphasized that MicroStrategy’s stock serves as a leveraged bet without fees. The firm has strategically utilized debt financing and share sales to fund its continuous Bitcoin acquisitions.