Michael Saylor Initiates Plan to Divest $216 Million Worth of MicroStrategy Stock Options
MicroStrategy (MSTR) executive chairman, Michael Saylor, has begun selling stock options of the company worth $216 million, according to a regulatory filing with the U.S. Securities and Exchange Commission. The filing reveals that Saylor intends to sell 310,000 stock option awards that were granted in 2014 and are set to expire in April.
During MicroStrategy’s Q3 earnings call, Saylor announced his plan to sell 5,000 shares per trading day for the next four months, subject to a minimum price condition. This information was initially disclosed in the 10-Q filing for that quarter, which stated that he had the ability to sell up to 400,000 shares of his vested options until April 26.
Explaining his decision on the call, Saylor stated, “Exercising this option will allow me to address personal obligations as well as acquire additional bitcoin (BTC) for my personal account. I should note that my equity stake in the company will remain significant after these sales, and I am optimistic about MicroStrategy’s prospects.”
MicroStrategy currently holds the largest amount of bitcoin in its treasury, with approximately 189,000 BTC, purchased in December and valued at around $8.5 billion at current prices. Despite the overall decline in cryptocurrency-focused stocks, MicroStrategy’s shares rose by 8.5% on Tuesday.
The price of bitcoin has been steadily increasing in recent months, currently trading at approximately $45,000. Market participants anticipate the approval of a spot bitcoin exchange-traded fund (ETF) by the U.S. Securities and Exchange Commission in the coming weeks. Such approval would potentially increase exposure to the asset from both retail and institutional investors.