MicroStrategy’s Bitcoin Bet Unlocks Massive Shareholder Value, MSTR at $1000

Business intelligence firm Microstrategy (MSTR) has been leading by example on how can a company change its fortunes by betting big on Bitcoin. On Wednesday, February 28, the Microstrategy (MSTR) share price registered 10% gains for the second consecutive day closing at $962.95. In the aftermarket hours, the MSTR stock has surged by an additional 2.85% moving closer to $1000.

Bitcoin Gains Fuel MicroStrategy Share Price

The massive back-to-back rallies in the MicroStrategy share price comes amid a strong rally in the Bitcoin price which surged all the way to $64,000 on Wednesday. On the weekly chart, the Bitcoin price is up by 20% as of now.

On the other hand, Microstrategy stock continues to outperform Bitcoin by gaining 40% in the last five trading sessions. As of Wednesday’s closing, the MSTR share price is up by a staggering 273% outperforming Bitcoin’s 168% gains.

It is clear that through its Bitcoin bet, MicroStrategy has managed to create a massive value unlocking for its shareholders. In a note issued on Tuesday, analysts at TD Cowen expressed their anticipation that Bitcoin transactions would ultimately benefit shareholders over time. They noted:

“MicroStrategy represents a new kind of firm that generates dollar-based cash flow from enterprise software and cloud services but then converts its excess cash flow – on an effectively leveraged basis – into Bitcoin. What started as a defensive strategy to protect the value of its reserve assets has become an opportunistic strategy intended to accelerate the creation of shareholder value.”

Earlier this week, just before the 20% Bitcoin price rally triggered, MicroStrategy purchased an additional 3,000 Bitcoin worth $155 million. With the recent BTC price rally to $64,000, MicroStrategy’s unrealized profits for its Bitcoin holdings have crossed past $5.7 billion.

Insiders Selling the MSTR Stock?

Michael Saylor, MicroStrategy’s executive chairman and largest investor, holds a 12% stake in the company. Additionally, he revealed in 2020 that he personally owns 17,732 Bitcoins. When combining these holdings, Saylor’s wealth has increased by approximately $700 million since Sunday.

According to a recent SEC filing on February 26, 2024, Michael Saylor, the Executive Chairman and 10% Owner of MicroStrategy Inc (NASDAQ:MSTR), sold 5,000 shares of the company.

The shares were sold at a price of $765.67 per share, totaling $3,828,350 for the transaction. This sale contributes to Saylor’s total sales over the past year, amounting to 165,000 shares, with no recorded purchases in the same period.

Looking at the insider transaction history of MicroStrategy Inc., there is a consistent pattern of selling, with 62 insider sells and no insider buys over the past year.