Michael Saylor, MicroStrategy’s Executive Chairman, has announced a four-month plan to sell $216 million of his MicroStrategy shares.
This move comes shortly after he announced his intention to use part of the proceeds to buy additional Bitcoin (BTC).
On January 2nd, Saylor filed a document with the SEC stating that he had begun to sell his 315,000 stock options. These options, which were awarded to him in April of 2014, are set to expire by April 30, 2024.
Per the filing, Saylor commenced the selling process on Jan. 2, beginning with the first set of shares he had acquired. He planned to sell 5,000 shares each week, for a total of 25,000 shares.
MicroStrategy’s CEO, Michael Saylor, announced his plan to sell 5,000 shares of the company’s stock everyday for the next four months. This plan is contingent on the stock price reaching a predetermined minimum.
In the company’s 10-Q filing on Nov. 1, CEO John Smith had previously declared that he was authorized to sell up to 400,000 shares from his vested options by Apr. 26.
This would have allowed him to generate nearly $2 million from the sale.
Saylor’s decision to sell part of his stake in MicroStrategy is driven by his desire to fulfill personal financial obligations and to increase his personal Bitcoin holdings. This move will help Saylor meet his obligations while still maintaining a substantial equity interest in the company.
MicroStrategy’s stock is outperforming Bitcoin prices by a large margin. The stock has seen a 411% gain since the beginning of last year, while Bitcoin prices have only seen a 170% increase.
This move comes as a result of Bitcoin’s recent rally, which has seen the cryptocurrency’s prices increase significantly.
As the current top institutional BTC holder, MicroStrategy is in a strong position as it competes against Blackrock, Fidelity, and Grayscale for the first U.S. approval of a spot Bitcoin ETF. The race is heating up, with the deadline for submission set for Jan. 10.
It will be interesting to see how MicroStrategy fares against its competitors in this race.
The firm has amassed a staggering 189,150 BTC, worth a total of $5.9 billion at current prices, over the years. This impressive stockpile was accumulated through a variety of purchases made at different points in time.
Saylor has argued that the company will remain an attractive option to investors seeking exposure to Bitcoin, even if the U.S. approves spot Bitcoin ETFs. This would provide a more regulated and secure way for investors to gain exposure to the digital currency.