Doubts and Uncertainties - MicroStrategy's Bitcoin Whale in Internal Conflict

Executives at MicroStrategy have sold their shares in the midst of the Bitcoin (BTC) bullrun recovery.
Michael Saylor, the notorious BTC fan and CEO of MicroStrategy, hasn’t given up any shares in the company himself since 2012, divergent strategies that raise questions.

When MicroStrategy executives sell

Virginia-based enterprise software company MicroStrategy has caught the attention of the crypto and financial media with its CEO’s atypical strategy of betting, all or nearly all, on Bitcoin. Indeed, since 2020, many journalists have joked that the company has turned into a Bitcoin (BTC ) investment war machine rather than a software company, its original name.

Recent filings with the SEC, the notorious U.S. Securities and Exchange Commission, on the other hand, suggest that some of the company’s senior executives are ambivalent about pursuing this strategy over the long term.

In particular,official SEC documents reveal that MicroStrategy’s CFO, Phong Le, and CTO, Timothy Lang, both unloaded their shares in August this year by selling about 30% of the options they had received

As Bloomberg reports, Lang sold a total of 10,000 of his options granted on August 26, pocketing about $7.1 million. Phong, meanwhile, sold 20,000 options between Aug. 2 and Aug. 6 for just over $7.3 million. Each kept about 20,000 options.

CEO Michael Saylor himself hasn’t sold any shares since 2012, though he reallocated 50,000 shares of the Class A company to another of his companies, Alcantara LLC, in January this year.

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MicroStrategy’s stock takes a hit

At the time of writing, MicroStrategy stock was down nearly 9.4% on the day and down just over 77% over the past six months. However, Ed Moya, senior market analyst at Oanda, argued that it is unlikely that the ventes by Phong and Lang are discouraging MicroStrategy investors.

“The CEO’s relentless support of Bitcoin has reoriented the company toward cryptocurrency trading and not necessarily the company’s software solutions and services. The stock price will likely continue to move in the direction of Saylor and his Bitcoin bet. “

Ed Moya, senior market analyst at Oanda

The report notes that while exercising options is common for executives, Phong and Lang’s moves were made without a pre-determined business plan. Matt Maley, chief market strategist at Miller Tabak & Co. said the move may be indicative of their concerns about the long-term viability of Saylor’s business strategy and his commitment to tying the company’s fate so closely to Bitcoin’s.

“Executives don’t sell shares if they think it will go higher.

It’

s just a bad sign, no matter how you slice it “

Matt Maley, chief market strategist at Miller Tabak & Co.

As of June 30, 2021, MicroStrategy held about 105,085 BTC, with Saylor doubling down on its crypto strategy in late July by pledging to continue to amass more BTC.

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Earlier in June, the company announced a $400 million debt raise to expand its Bitcoin cash assets, and in August, MicroStrategy added an additional 3,907 BTC to its holdings, bringing its total to 108,992 BTC, at a cost to the company of $2.918 billion.

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