MicroStrategy, the dominant holder of Bitcoin among US listed companies, founded by Michael Saylor, cashed out $370 million by selling MicroStrategy stocks from January to the end of April this year.
(Background: MicroStrategy’s Q1 financial report shows a net loss of $53.1 million, and the buying momentum decreased significantly in April, with only 144 BTC purchased.)
(Additional context: Did Michael Saylor, the founder of MicroStrategy, make a big profit by selling stocks? Will Bitcoin fanatics continue to buy more?)
Table of Contents:
Michael Saylor says he won’t sell Bitcoin, but he has made a profit of $370 million by selling stocks
Selling MicroStrategy stocks equals selling Bitcoin?
Will Michael Saylor invest in BTC again?
With the arrival of the Bitcoin bull market, the stock price of MicroStrategy, the dominant holder of Bitcoin among US listed companies, has skyrocketed from $685 to $1,919 since the beginning of the year, with a peak increase of 280%.
As of the end of April, the total Bitcoin holdings of the company have reached 214,400, enjoying a floating profit of nearly $6 billion, despite the current decline in Bitcoin prices.
Although founder Michael Saylor has repeatedly stated publicly that he will not sell any Bitcoin, it is worth noting that Saylor signed a stock selling plan with the company last year, allowing him to sell 400,000 shares of Class A MicroStrategy stock from January to the end of April this year. With the recent completion of the stock selling plan, he has cashed in $372.7 million in revenue.
Does selling MicroStrategy stocks equal selling Bitcoin?
Upon careful consideration, the reason why MicroStrategy’s stock price has soared is largely due to its embrace of BTC (its main business is not impressive and does not generate huge profits). Investors indirectly view investing in the company as leveraged investment in BTC.
In this context, isn’t Michael Saylor’s selling of MicroStrategy stocks equivalent to selling Bitcoin? Taiwanese cryptocurrency researcher Yu Zhe-an also posted on his Facebook, questioning whether Michael Saylor will invest in BTC again.
Of course, we cannot blame Saylor entirely. After all, regarding the 400,000 shares of MicroStrategy stock he sold this year, he stated that they were stock options he obtained in 2014 because he chose to receive a salary of only $1 at that time, which is not uncommon in large European and American corporations as a form of compensation.
If these options are not exercised this year, they will expire. And he has also stated that he will invest the cash he obtained in his financial planning, including buying Bitcoin. However, it is unknown how much proportion he will allocate for buying more Bitcoin.
It is just coincidental that he sold at the highest point in the company’s stock in over 20 years, which makes people wonder if this is a well-calculated move by Saylor.
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