MicroStrategy's Michael Saylor Netted $20 Million In Sell-Off Prior To Bitcoin ETF Launch

MicroStrategy Inc. MSTR co-founder Michael Saylor recently made a surprising move by selling a significant number of company shares ahead of the U.S. Securities and Exchange Commission's approval of ETFs focused on Bitcoin BTC/USD. 

Saylor, the executive chairman of MicroStrategy, sold between 3,882 and 5,000 shares between Jan. 2 and Jan. 10, coinciding with the SEC's announcement regarding Bitcoin ETFs. This unexpected move reportedly added over $20 million to Saylor's portfolio.

This is Saylor's first sale of shares in almost 12 years, reported Bloomberg. 

A spokesperson for MicroStrategy clarified to the outlet that the sale is part of a pre-existing plan disclosed in a filing from the previous year and is entirely separate from the recent ETF approvals.

The plan outlined the intention to sell up to 5,000 shares daily from Jan. 2 to April 26, with a goal of liquidating as many as 400,000 shares during this period.

Also Read: Bitcoin's Rocky Road Ahead: Analyst Warns Of Post-ETF Price Plunge

The move by Saylor coincided with a 23% decline in MicroStrategy's stock that has occurred since the start of the year.

This decline is partly attributed to concerns that the introduction of Bitcoin ETFs could make the company's shares less appealing to investors. The company has long been considered a proxy for Bitcoin due to its substantial holdings of the cryptocurrency on its balance sheet.

MicroStrategy initiated its Bitcoin investments in 2020, citing the need to diversify and mitigate the risk of inflation on its cash holdings.

However, during the previous cryptocurrency market downturn, the company had to absorb significant write-offs due to its Bitcoin holdings.

Presently, MicroStrategy's Bitcoin holdings are valued at approximately $8.3 billion, reflecting a substantial paper gain of around 40%.

As the ETFs tracking Bitcoin make their debut, the cryptocurrency market is experiencing a surge, with Bitcoin's value rising nearly 3% this year and briefly reaching the $49,000 mark for the first time since December 2021.

Now Read: Here's Why Michael Saylor Says FTX Collapse And Other Crypto Scandals Will Benefit Bitcoin

This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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