MicroStrategy Stock Gives Back Gains As Bitcoin Slides: What's Going On?

MicroStrategy Inc MSTR shares are trading lower Monday. The company recently announced the pricing of its convertible senior notes offering. The stock may also be down amid pre-planned sales by MicroStrategy co-founder and executive chairman Michael Saylor.

What To Know: MicroStrategy shares are pulling back Monday after rallying more than 120% over the last month on the back of rising Bitcoin prices.

Last week, MicroStrategy announced the pricing of its offering of $525 million worth of 0.875% convertible senior notes due 2031. The company also said it planned to grant the initial purchasers a 13-day option to purchase up to an additional $78.75 million of the notes. The offering was expected to close on Monday.

MicroStrategy planned to use the net proceeds of approximately $515 million to buy more bitcoin, a strategy the company continues to rely on. Near the end of last month, MicroStrategy said in a filing that it acquired additional bitcoin with proceeds from its prior offering, which helped push shares higher. As of March 10, the company held an aggregate of approximately 205,000 bitcoin.

The weakness in MicroStrategy stock on Monday may also be partly due to continued selling from Saylor. The MicroStrategy executive chairman has been selling large amounts of MicroStrategy stock in recent months as part of a Rule 10b5-1 trading plan adopted by Saylor on September 19, 2023. Check out Benzinga’s Insider Trades page for more details on all recent trading activity.

MicroStrategy is a business intelligence, mobile software and cloud-based services company, but more than anything else, it serves as a proxy for bitcoin. Bitcoin was trading down about 1.4% over a 24-hour period at $67,233 at the time of writing.

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MSTR Price Action: MicroStrategy shares were down 15.6% at $1,505 at the time of publication, according to Benzinga Pro.

Photo: Mohamed Hassan from Pixabay.