MicroStrategy has been in the spotlight of the crypto community and major financiers after its first announcement of a major Bitcoin purchase back in August last year. Since then, MicroStrategy has become one of the top professional investors in BTC, with CEO Michael Sailor pledging his dedication to cryptocurrency.
However, according to recent documents from the US Securities and Exchange Commission (SEC), some large shareholders of MicroStrategy do not share Sailor’s long-term strategy and are starting to get rid of the company’s shares.
Recall that representatives of MicroStrategy announced their first investment in Bitcoin in August. Then the company acquired 21,454 BTC for $ 250 million, which instantly attracted the attention of the entire cryptocurrency community.
Since then, MicroStrategy’s portfolio has grown more than fivefold. The company currently holds 108,992 bitcoins, which were acquired for a total of $ 2.918 billion. At today’s exchange rate, the investment is estimated at 5.049 billion.
What’s wrong with MicroStrategy?
According to news outlet Cointelegraph, MicroStrategy CFO Fong Le and CTO Timothy Lang sold their shares in August, ditching about 30 percent of the options previously received as compensation.
On August 26, Lange sold 10,000 options, and then liquidated all of the converted shares, receiving approximately $ 7.1 million in deals. Le, for his part, sold 20,000 options between August 2 and 6 and then sold the stock for just over $ 7.3 million .
MicroStrategy CEO Michael Saylor hasn’t sold MSTR shares since 2012. However, he reinvested 50 thousand securities in another firm, Alcantara LLC, in January this year. SEC reports say Lang and Le entered the aforementioned deals without a previously agreed trading plan. Miller Tabak + Co’s chief market strategist, Matt Mayley, believes the decision was made because of disagreement with Sailor’s long-term strategy for investing in Bitcoin.
Recall that earlier MicroStrategy began to issue debt obligations to buy even more bitcoins, that is, in fact, it undertook to risk the current position and stability. Sailor himself stated that he was ready to keep coins for at least ten years and believed in their enormous potential.
At the same time, the share of BTC on MicroStrategy’s balance sheet has become so large that now the company is highly dependent on the climate in the crypto market. Lang and Le probably don’t want to put their investments at such high risk.
We have updated the latest information: MSTR is currently trading at $ 640. Over the past six months, they have more than doubled in price, which generally echoes the behavior of Bitcoin. Recall that the cryptocurrency set a price maximum at $ 64,000 in April, followed by a May collapse of up to $ 30,000. At the same time, at the beginning of this week, BTC rose to $ 52,920 – a level that the cryptocurrency has not yet taken since May.
The great future for Bitcoin, predicted by Sailor, is reflected in the recent adoption of the cryptocurrency as a legal tender by the government of El Salvador.
However, even this event was «too publicized,» says Jurrien Timmer, investment director of the Fidelity fund. Here is a quote from his recent interview, in which the expert shares his attitude to what is happening. The replica is given by Cointelegraph.
El Salvador did not get rid of the dollar as its official currency. The government did not switch from the dollar to Bitcoin entirely.
Note that BTC was not supposed to replace the dollar. However, now the two currencies in the country operate on equal terms.
We believe that the legalization of BTC has already become a historical event in itself. As previously noted by the founder of Cardano Charles Hoskinson, this news may become a precedent for other world states that will also recognize Bitcoin in the future. With such small steps towards the mass adoption of cryptocurrency, it will become the basis of a new global financial system. We hope this won’t be long.