As the largest MicroStrategy shareholder, Michael Saylor holds Class B shares valued at an estimated $2.3 billion.
MicroStrategy founder Michael Saylor has sold up to 370,000 shares of his brainchild over the past four months. This follows his entry into a stock-sale agreement with the company last year.
Under the agreement, he has the authorization to unload up to 400,000 shares until April of this year.
Saylor to Offload 400,000 Shares
Michael Saylor has successfully cashed in 370,000 shares, totaling about $372.7 million in value, from this year’s stock sales. This accounts for over 90% of the agreed-upon 400,000 shares outlined in last summer’s September agreement with MicroStrategy.
Under this agreement, known as a 10b5-1 plan, Saylor could sell up to 5,000 shares daily from January 2 to April 25. These shares were tied to a vested stock option set to expire on April 30, 2024. So far, his Class A holdings have decreased to 30,000 shares following the latest disclosed sale on Thursday.
Despite a 37% decline from its March peak, the stock has enjoyed significant growth, rising 91% this year following a remarkable 346% surge in 2023, making it one of the top performers in the U.S. stock market.
As the largest MicroStrategy shareholder, Saylor’s Class B holdings are estimated at $2.3 billion. Additionally, he holds 400,000 Class A shares acquired through an option granted in 2014, which are the shares he is swiftly selling off. This sales plan was discreetly disclosed in the company’s third-quarter earnings filing in November.
Saylor’s Bitcoin Holdings Thrive Amid Market Surge
While Saylor has made significant stock sales, most of his wealth is tied up in his Class B holdings of MicroStrategy, coupled with the 17,732 BTC he acquired in 2020, now valued at approximately $1.1 billion.
In the meantime, MicroStrategy has accumulated over 214,000 BTC since 2020. These assets, constituting roughly 1% of the total existing BTC supply, are now valued at approximately $13.6 billion, comprising the majority of MicroStrategy’s $21.3 billion market capitalization.
Bitcoin has been surging this year, increasing MicroStrategy’s returns due to the launch of spot BTC exchange-traded funds (ETFs) in January. Furthermore, the Bitcoin halving, which takes place every four years and halves rewards for Bitcoin miners, has attracted more participation in the market.
In a market where consumers can purchase Bitcoin directly on various exchanges or invest in different new ETFs, Saylor notes MicroStrategy’s ongoing advantage as a leveraged BTC plays without the associated management fees.
Last month, the company announced it raised $782 million through a convertible debt sale at an interest rate of 0.625%, specifically stating the intention to acquire more BTC with the proceeds.