- Business intelligence company MicroStrategy (MSTR) is setting an example of how a company’s fate can be changed with a significant Bitcoin bet.
- Consecutive significant rallies in MicroStrategy’s stock price came amid a robust rise in Bitcoin prices on Wednesday, with Bitcoin surging by 20% so far.
- Thanks to MicroStrategy’s Bitcoin bet, it is evident that the company has achieved significant value creation for its shareholders.
Michael Saylor’s MicroStrategy stocks (MSTR) gain strength from the rise in Bitcoin: Could the stocks reach $1000?
MicroStrategy Stocks Rising Alongside Bitcoin
Business intelligence company MicroStrategy (MSTR) is setting an example of how a company’s fate can be changed with a significant Bitcoin bet. On Wednesday, February 28th, MicroStrategy (MSTR) stock price closed at $962.95, marking a second consecutive day of 10% gains.
In the evening, MSTR shares saw an additional 2.85% increase, getting even closer to the $1000 level. Consecutive significant rallies in MicroStrategy’s stock price came amid a robust rise in Bitcoin prices on Wednesday, with Bitcoin surging by 20% so far.
Meanwhile, MicroStrategy stock has continued to outperform Bitcoin, gaining 40% in the last five trading sessions. At the closing on Wednesday, MSTR stock had surged by a striking 273%, surpassing Bitcoin’s 168% gain.
Thanks to MicroStrategy’s Bitcoin bet, it is evident that the company has achieved significant value creation for its shareholders. In a note published on Tuesday, TD Cowen analysts expressed that Bitcoin transactions would eventually benefit shareholders. They stated:
“MicroStrategy represents a new type of company that generates dollar-based cash flow from business software and cloud services but effectively converts excess cash flow into Bitcoin on a leveraged basis. What began as a defensive strategy to preserve the value of reserve assets has evolved into an opportunistic strategy aimed at accelerating shareholder value creation.”
At the beginning of this week, just before triggering a 20% increase in Bitcoin price rally, MicroStrategy purchased an additional 3,000 Bitcoins worth $155 million. With the recent BTC price rally, unrealized profit for MicroStrategy’s Bitcoin assets exceeded $5.7 billion.
Is There Insider Selling of MSTR Stocks?
MicroStrategy’s CEO and largest investor, Michael Saylor, holds a 12% stake in the company. He also disclosed personally owning 17,732 Bitcoins in 2020. When combined, Saylor’s wealth has increased by approximately $700 million since Sunday.
The latest SEC filing dated February 26, 2024, revealed that Michael Saylor, Executive Chairman and 10% Owner of MicroStrategy Inc (NASDAQ:MSTR), sold 5,000 shares of the company. The total value of these shares, priced at $765.67 per share, amounted to $3,828,350 for the transaction. This sale adds 165,000 shares to Saylor’s total sales conducted during the past year, with no recorded purchases during the same period.
