Michael Saylor’s bold move to adopt Bitcoin in 2020 has netted the co-founder and chairman of MicroStrategy Inc (NASDAQ:MSTR) significant profits. Saylor has reportedly made about $400 million from pre-planned daily sales of about 5,000 shares of MicroStrategy since January, thanks to a notable surge in the stock price.
Shares, which have doubled this year to about $1,280, have outpaced gains in Bitcoin, the cryptocurrency that Saylor embraces. MicroStrategy’s stock performance appears to alleviate investor concerns about Saylor’s sales activity, given his controlling stake in the company.
Despite questions about MicroStrategy’s premium for Bitcoin, especially following the introduction of a US exchange-traded fund for the cryptocurrency, investor sentiment remains positive. However, some skeptics, such as Kerrisdale Capital Management LLC, have taken short positions, citing the stock as outpacing the Bitcoin price surge.
Now expectations have shifted to MicroStrategy’s first-quarter results, which are expected after regular trading hours on Monday. Analysts expect fixed revenue of about $122 million and a net loss of 61 cents per share. MicroStrategy’s Bitcoin holdings, currently valued at around $14 billion, have been a key factor driving its investment strategy.
Investors’ focus is also on MicroStrategy adopting accounting rules that would value Bitcoin at market price, with a deadline of 2025. Despite past corruption allegations, MicroStrategy continues to expand its Bitcoin holdings and has already spent more than $1 billion on the cryptocurrency for the first time. Quarter 2024.
“Saylor has a simple strategy for MSTR: sell equity/debt and buy BTC with the proceeds,” said Jeff Dorman, Arca’s chief investment officer, referring to MicroStrategy’s Bitcoin-focused investment approach. He emphasized continued efforts to
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