MicroStrategy, the business intelligence company with the largest corporate Bitcoin holdings, has seen a series of insider MicroStrategy stock sales despite remaining bullish about BTC’s future.
The company continues to heavily buy Bitcoin and its most recent purchase came earlier this week. However, recent actions by top executives suggest a divergence between their public strategy and personal financial moves.
On 06 Nov, 2024 Andrew Kang, Senior Executive Vice President & Chief Financial Officer of MicroStrategy Inc. disposed of 5,700 shares of Class A Common Stock.
The shares were sold at various prices between $255.93 and $ 260.40 to realize a total of $ 1,470,000. After this transaction, Kang retains 12,080 shares in the company.
On the same day, the company’s Senior Vice President and Chief Accounting Officer, Jeanine Montgomery, also sold 56,250 shares. The shares were sold at $255.04 to $260.75 averaging $14.48 million. After the sale Montgomeryl retained 5,670 shares.
These sales are part of a broader trend at MicroStrategy. Over the past year, there have been 149 insider sales and no insider purchases.
Bitcoin permabull Michael Saylor, MicroStrategy’s Executive Chairman, has also sold shares. On April 22, 2024, Saylor sold 719 shares of MicroStrategy. This is part of a broader trend, with Saylor having sold 350,000 shares of the company over the past year. Notably, Saylor has not purchased any new shares in the same period.
MicroStrategy’s Bitcoin Holdings
Despite these insider sales, MicroStrategy continues to expand its Bitcoin holdings. As of January 12, 2025, the company holds 450,000 BTC, valued at approximately $41 billion.
MicroStrategy’s total investment in Bitcoin is around $28.2 billion, with an average purchase price of $62,691 per Bitcoin.
The company reported buying an additional 2,530 BTC for $243 million at an average price of $95,972 per Bitcoin. This follows its strategy of acquiring Bitcoin despite the impact of insider sales on its stock price.
While the company’s leadership continues to acquire Bitcoin, insiders are selling shares. These sales are part of compensation packages, but the timing raises questions about the executives’ views on the company’s future.
MicroStrategy’s stock is currently valued at a premium compared to its Bitcoin holdings. The market value of the company’s Bitcoin holdings is approximately $41 billion, and the stock is currently priced at a premium relative to its BTC assets. With a market capitalization of $78 billion, this reflects a 1.89X premium to Bitcoin’s value.
Michael Saylor on January 14 highlighted the success of MicroStrategy’s treasury operations in a post on his X account.
As per the post, MicroStrategy’s treasury operations gained 1,440 BTC last week, representing a BTC yield of 0.32% based on its total holdings of 447,470 BTC. At a Bitcoin price of $96,000, this equates to $138.2 million in shareholder value creation.
This premium has helped the company fund its Bitcoin purchases, but the sales by insiders suggest a more cautious approach on their part.
Why are Execs Selling MicroStrategy stock?
Why are executives cashing out if they are so positive about the future of Bitcoin? The sales might be a result of the ambitions for personal enrichment or in an attempt to balance the personal portfolio.
On the other hand, they could suggest a more conservative outlook regarding the firm’s future performance even as it lays out grand projections for Bitcoin’s value.
