It is known that one of the people who support Bitcoin the most is Michael Saylor, CEO of MicroStrategy. While Saylor always states his support for the biggest cryptocurrency, MicroStrategy shares are also appreciated when the price of Bitcoin increases due to his company’s purchase of Bitcoin.
Two executives have made a sale, Saylor is on!
However, some executives of MicroStrategy may not trust the biggest cryptocurrency as much as Saylor! In August, when Bitcoin turned its downtrend in the summer months, the company’s chief financial officer Le Phong and chief technology officer Timothy Lang sold a portion of their prize shares. According to the information in the SEC files; both executives earned $7 million each after these sales. CEO Saylor, known for his great support for Bitcoin, did not make any sales.
Such sales are generally not considered unusual. In fact, such shares given to them are seen as a part of the compensation of the managers. It is also noteworthy that the share sales came after Saylor’s Bitcoin purchase move.
Share value increased 5 times
As it is known, MicroStrategy started to buy Bitcoin institutionally in August of 2020. And after this period, the company’s shares appreciated 5 times in 1 year. With Bitcoin ETF applications not being accepted for a long time in the US, some investors are investing in the stocks of companies like MicroStrategy, which are constantly buying Bitcoin. Thus, they are both subject to the SEC and receive a (relative) share that sort of follows the Bitcoin price.
“So the managers don’t believe”
Matt Maley, chief market officer of Miller Plates + Co, thinks this is different from a regular executive sale:
“Chief executives won’t sell stock if they believe it will go higher. It doesn’t matter how you do it. I think that’s a bad sign.”
The company did not give these shares to the chief executives last year due to the large number of award shares given in previous years. Saylor was given 400,000 shares in 2014.
Ed Moya, who works as chief market analyst at Oanda, stated that these sales are not at a level to scare Bitcoin bulls:
“Thanks to the Bitcoin investments made, MicroStrategy started to move out of a software solutions service company. From now on, the shares will move according to the price of Bitcoin, not according to the work of the company. Therefore, I do not see a situation to be afraid of in the long run.”
MicroStrategy’s balance sheet currently has 108,992 BTC.
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