By Hannah Perez
Two top MicroStrategy executives sold shares amid Bitcoin’
s bullish rally. Some suggest the selling could be due to a lack of conviction in the crypto investment strategy led by Saylor.
enterprise software company MicroStrategy
has attracted attention from the crypto community and the news media at large over the past few months after the company started betting big on
The strategy has been led by CEO Michael Saylor, who has shown himself to be a big supporter of the cryptocurrency and has become a prominent figure in the crypto space over the past year. MicroStrategy began in 2020 to exchange cash reserves in its treasury for bitcoins. This year, the firm’s strategy has continued aggressively
raising the fund to 108,992 BTC.
However, not all of the company’s executives seem to have the same conviction as Saylor around the long-term investment strategy. According to a Bloomberg report, two top MicroStrategy executives have opted to sell a portion of their shares a few weeks ago, when the price of Bitcoin
was once again hovering near USD $50,000.
MicroStrategy Executives Sell Shares
with the U.S.
Securities and Exchange Commission (SEC), MicroStrategy
CFO Phong Le and Chief Technology Officer Timothy Lang have sold shares in the company by exercising approximately 30% of stock options granted to them as compensation.
The stock sale, which reportedly took place in August, is said to have generated combined gains of more than $14 million for the executives.
According to Bloomberg, Lang exercised 10,000 of his options granted on Aug. 26 and then sold all of the converted shares, pocketing about US$7.1 million. Phong Le, meanwhile, exercised 20,000 options between Aug. 2 and Aug. 6 and then sold the shares for just over USD$7.3 million. Each has held on to approximately
e 20,000 options.
It should be noted that the company’s CEO, who has led the bitcoin acquisition strategy, has not sold any of his shares since 2012, reports cited. Although, Saylor did reallocate 50,000 Class A shares of the company to another of his firms, Alcantara LLC, in January, as highlighted by Cointelegraph.
The report noted that while exercising options is common for executives, Phong and Lang’s moves were made without a pre-established trading plan.
Mistrust over Saylor’s Bitcoin Investment Strategy
MicroStrategy’ s stock has surged over the past year, coinciding with repeated purchases of bitcoins. In fact, many more traditional investors have begun opting to invest in the company’s stock as a way to gain indirect exposure to the flagship cryptocurrency. Some mutual funds have included the firm’s shares for just this purpose.
“Saylor’s relentless support of Bitcoinby MicroStrategy has turned the firm into a cryptocurrency trade and not necessarily a bet on the company‘s software solutions and services,” Oanda Corp. senior market analyst Ed Moya commented to Bloomberg on the matter.
He further stressed that “the stock price will likely continue to go in the direction of Saylor and its bet on Bitcoin” and added that he doesn’t believe the insider selling will disrupt cryptocurrency bulls in the long run. The executives’ recent decision has also led some to suggest that the investment strategy in Bitcoin could have been the selling motivation.
Matt Maley, chief market strategist at Miller Tabak + Co., hinted that the move may be indicative of executives’ concerns about the long-term viability of Saylor’s corporate strategy and its commitment to linking the company’s fate so closely to that of Bitcoin. Speaking to Bloomberg, Maley noted:
Senior executives don’t sell stocks if they think they’re going to go up. That’s a bad sign, any way you look at it.
Version by Hannah Estefania Perez / DiarioBitcoin
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