Michael Saylor, the founder of MicroStrategy, the dominant holder of Bitcoin in US listed companies, has cashed out $370 million by selling MicroStrategy stocks from January to the end of April this year.
Summary:
MicroStrategy Q1 financial report shows a net loss of $53.1 million, and the buying force decreased significantly in April, with only 144 BTC purchased.
Background:
Michael Saylor, the founder of MicroStrategy, made a huge profit of $370 million by selling stocks. Will Bitcoin enthusiasts continue to buy?
Table of Contents:
Michael Saylor says he won’t sell Bitcoin, but he has already made a profit of $370 million by selling stocks
Does selling MicroStrategy stocks mean 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 in US listed companies, has skyrocketed from $685 to $1,919, reaching a growth rate of 280% so far this year.
As of the end of April, the total amount of Bitcoin held by the company has reached 214,400, and although the current Bitcoin price has declined, it still enjoys nearly $6 billion in floating profits.
Although Michael Saylor, the founder, has repeatedly stated that he will not sell any Bitcoin, it is worth noting that Saylor signed a stock sale plan with the company last year, allowing him to sell 400,000 Class A MicroStrategy stocks from January to the end of April this year. With the recent completion of the stock sale plan, he has cashed in $372.7 million in income.
Does selling MicroStrategy stocks mean selling Bitcoin?
Upon careful consideration, the reason for the skyrocketing stock price of MicroStrategy is mainly due to its strategy of embracing BTC (its main business is not outstanding and does not generate huge profits). Investors indirectly view investing in the company as leveraging BTC.
In this context, does Michael Saylor’s sale of MicroStrategy stocks mean selling Bitcoin? Taiwanese cryptocurrency researcher Yu Zhe’an also posted on his Facebook:
Will Michael Saylor invest in BTC again?
Of course, we cannot solely blame Saylor. After all, regarding the 400,000 MicroStrategy stocks 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 back then, which is not uncommon compensation in large European and American companies.
If these stock options are not exercised this year, they will expire. He has also stated that he will allocate the cash from the sale to his financial planning, including buying Bitcoin. However, the exact proportion of additional Bitcoin purchases is currently unknown.
It just so happens that he sold at the highest point of the company’s stock in over 20 years, which makes people wonder if this is Saylor’s well-thought-out move.
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