MicroStrategy Founder Michael Saylor Nets $370M From MSTR Sales

Keywords: Michael Saylor, MicroStrategy, stock sales, Bitcoin holdings, market surge, BTC, ETFs

MicroStrategy founder Michael Saylor has been actively selling off his Class A shares, with a total of 370,000 shares sold so far this year. This accounts for over 90% of the agreed-upon 400,000 shares outlined in a stock-sale agreement made last September. Saylor has been selling up to 5,000 shares daily under a 10b5-1 plan, reducing his holdings to 30,000 shares as of the latest disclosed sale.

Despite a 37% decline from its peak in March, MicroStrategy’s stock has shown significant growth, rising 91% this year and 346% in 2023. Saylor, as the largest shareholder, holds Class B shares estimated at $2.3 billion, along with 400,000 Class A shares acquired in 2014, which he is currently selling off. His primary wealth is tied up in his Class B holdings and the 17,732 BTC he acquired in 2020, now valued at approximately $1.1 billion.

MicroStrategy has accumulated over 214,000 BTC since 2020, valued at approximately $13.6 billion, comprising a significant portion of the company’s $21.3 billion market capitalization. With the surge in Bitcoin prices this year and the introduction of spot BTC ETFs in January, MicroStrategy’s returns have increased. The Bitcoin halving event, which occurs every four years, has also attracted more market participation.

Saylor sees MicroStrategy’s advantage as a leveraged BTC play without the associated management fees, especially in a market where consumers can purchase Bitcoin directly on exchanges or invest in ETFs. Recently, the company raised $782 million through a convertible debt sale at a low interest rate of 0.625%, with the intention of acquiring more BTC with the proceeds.

In conclusion, Michael Saylor’s stock sales, primarily of his Class A shares, have been strategic and in line with a predetermined agreement with MicroStrategy. While his holdings in the company have decreased, his wealth remains tied up in his Class B shares and significant Bitcoin holdings. MicroStrategy’s aggressive approach to acquiring BTC has paid off, with the company’s BTC assets now comprising a substantial portion of its overall market capitalization. Saylor continues to see the potential in Bitcoin and leveraged BTC plays as a key strategy for MicroStrategy’s growth in the future.
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