Few investors are as bullish on Bitcoin
as MicroStrategy founder Michael Saylor. His company has been buying BTC so aggressively for months that it has even credited some of the growth. Sponsored Sponsored
For years, Microstrategy was only known for its software solutions and rather few people knew Saylor. Over the past year, however, he has gained global recognition and has become the de facto face of institutional interest in Bitcoin. Indeed, his company Microstrategy bought billions of dollars worth of BTC and became the largest publicly traded hodler
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Even when Elon Musk began criticizing the flagship cryptocurrency and it seemed he would dump his coins, Saylor stood firmly by his stance. It even got to the point where Microstrategy began to look more like a cryptocurrency investment
vehicle than a software developer.
Is MicroStrategy dumping its BTC?
But according to one anonymous investor and analyst, Mr. Whale, Saylor was simply waiting for the best moment to shed his position, and that moment may have just arrived. Known for his wads of followers Mr. Whale, claims that Michael Saylor behind the scenes is actually realizing profits.
The Twitter analyst pointed to a move by Microstrategy that has caused surprise among both Saylor’s supporters and detractors. The company revealed some time ago that it was forming a subsidiary known as Macrostrategy LLC to store its BTC. In its filing with the SEC, it claimed that its new company would be valued at $3.37 billion through BTC alone.
Michael Saylor was urging everyone to buy $BTC today at $51K.
He also moved all of MicroStrategy’s BTC to a shady LLC, which means he can now sell without filing with SEC.
My guess is that Saylor is dumping his $BTC
holdings on those he’s actively trying to lure in. –
Mr. Whale (@CryptoWhale) September 7, 2021
This information is nothing new and was made public over two months ago. Microstrategy was also openly talking about creating a new entity. It is true, however, that thanks to
and transferring BTC to a new company, Saylor can sell his positions without having to file reports with the SEC.
There have also been concerns online about Saylor’s past and his sudden becoming Bitcoin’s biggest supporter. Just a few years ago, he still had a very bearish attitude and claimed that BTC’s days “are numbered”.
days are numbered. It seems like just a matter of time before it suffers the same fate as online gambling. – Michael Saylor (@michael_saylor) December 19, 2013
However, this is not surprising. Many well-known investors have previously criticized BTC, but have undergone conversions. Billionaire Mark Cuban is a case in point.
Furthermore, there are also doubts about Microstrategy’s business prospects. This is because the company’s revenues have been falling regularly since 2014. The bad streak only ended when Saylor decided to invest in Bitcoin.
All things considered, it may be time for a moment of reflection. After all, MicroStrategy has 108,000 BTC in its portfolio, and that gives it immense power over the market.
Company executives are selling shares
Saylor founded Microstrategy in 1989. He managed to stay at the helm for three decades, and has now placed his “baby” at the heart of a growing sector. Over the years, his employees have shown great faith in him. Even when he had to pay an $8.2 million fine for manipulating the company’s accounting books to make it look profitable while it was making a loss.
However, it now appears that some of Saylor’s top associates are not as convinced about the direction the company is taking. According to a Bloomberg report, CFO Le Phong and Chief Technology Officer Timothy Lang divested their Microstrategy shares after exercising about 30 percent of their options. They each received $7 million from the sale of their shares.
Option conversions are not unusual or alarming for any board member. However, these two men are selling despite the fact that after investing in BTC, the company’s stock increased fivefold.
One of those who have questioned the move is Matt Maley, chief market strategist at Miller Tabak + Co. He believes that the two directors may be concerned about the direction Saylor is taking the company, especially with regard to the long-term future of the Bitcoin-based company.
Senior directors don’t sell shares if they think the company will gain momentum. This is simply a bad sign no matter how you slice it.
While this situation may be worrisome for Microstrategy, Edward Moya says that it will not affect Bitcoin’s momentum. According to him, bulls rule the market and “no amount of small insider selling is likely to upset them”. Moya added:
Saylor’s relentless support of MicroStrategy for Bitcoin has turned the company into a cryptocurrency trading stock and not necessarily a software solutions and services company. The stock price will likely continue to move in the direction of Saylor and his bet on Bitcoin.
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