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- Concerns about the long-term profitability could cause offload
- MicroStrategy CEO Michael Saylor himself has not sold any shares
- Experts feel that there is no lack of investors who believe in Saylor’s commitment to Bitcoin
Virginia-based enterprise software company MicroStrategy is in the news after it captured the attention of the crypto and financial community for its CEO’s attempts to go all-in on Bitcoin. From 2020 the company’s tryst with Bitcoin started till some reporters began saying that the company is closer to a Bitcoin investment Vehicle than a software firm.
In recent filings with the United States Securities and Exchange Commission, it becomes clear that its top-level executives are unsure about following this strategy on a long-term basis. MicroStrategy chief financial officer Phong Le and chief technology officer Timothy Lang offloaded stocks in August of this year and exercised 30% of the options they received as compensation.
According to a Bloomberg report, Timothy Lang exercised 10,000 of his awarded options on August 26 and later sold all the converted shares, pocketing roughly $7.1 million. On the other hand, Phong exercised 20,000 options between August 2 and August 6 and then sold the shares in return for a little over $7.3 million. Each has held on to roughly 20,000 possibilities.
MicroStrategy CEO Michael Saylor himself has not sold any shares. However, this January, he reallocated 50,000 shares of Class A company stock to another of his firms, Alcantara LLC, and this can be described more like a rearrangement of funds.
Concerns about long-term profitability could precipitate the move
The report adds that it is common for executives to exercise options, but Phong and Lang’s moves were made without a pre-arranged trading plan. Matt Maley, the chief market strategist of Miller Tabak + Co, feels that the move could be precipitated by concerns about the long-term profitability of Saylor’s corporate strategy and his commitment to tying the company’s fate so closely to that of Bitcoin. Senior Executives don’t sell the stock if they are convinced that its value will go higher. So the situation is terrible no matter how you dice it.
As of June 30, 2021, MicroStrategy owned 105,085 BTC, with Saylor doubling down on his crypto strategy in late July by pledging to continue to amass more BTC. In June, the company announced a $400-million debt raise to expand its Bitcoin treasury holdings. In August, the company added another 3,907 BTC to its holdings, bringing its total to 108,992 BTC for $2.918 billion.
MicroStrategy stock has tanked by 9.4% on the day and is just 77% over the past six months. However, experts feel that there is no lack of investors who believe in Saylor’s commitment to Bitcoin. The CEO’s unrelenting support for Bitcoin has made the company a big player in the cryptocurrency trade.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
