MicroStrategy CEO Michael Saylor's company shares gain strength as Bitcoin rises: Can shares rise to $1,000?
MicroStrategy Shares Rise Along with Bitcoin
Business intelligence company MicroStrategy (MSTR) provides an example of how a company can change its fortunes with a big Bitcoin bet. On Wednesday, February 28, MicroStrategy (MSTR) stock price closed at $962.95, posting gains of 10% for the second day in a row.
In the evening hours, MSTR stock rose an additional 2.85%, moving even closer to the $1,000 level. Consecutive major rallies in MicroStrategy share price come amid a strong rally in Bitcoin price on Wednesday, with Bitcoin price up 20% so far.
On the other hand, MicroStrategy stock continues to outperform Bitcoin, gaining 40% in the last five trading sessions. At the close on Wednesday, the MSTR share price was up a stunning 273%, outpacing Bitcoin's 168% gain.
It's clear that thanks to MicroStrategy's Bitcoin bet, the company has achieved a huge increase in value for its shareholders. In a note published Tuesday, TD Cowen analysts said Bitcoin transactions will eventually benefit shareholders over time. They stated:
âMicroStrategy represents a new breed of firm that generates dollar-based cash flows from business software and cloud services, but then effectively converts the excess cash flow into Bitcoin on a leveraged basis. âWhat began as a defensive strategy to preserve the value of reserve assets has evolved into an opportunistic strategy aimed at accelerating the creation of shareholder value.â
Earlier this week, just before a 20% surge that triggered the Bitcoin price rally, MicroStrategy purchased an extra 3,000 Bitcoins worth $155 million. With the recent BTC price rally, MicroStrategy's retained earnings for Bitcoin holdings have surpassed $5.7 billion.
Are Insiders Selling MSTR Shares?
MicroStrategy's CEO and largest investor, Michael Saylor, owns a 12% stake in the company. He also revealed that he personally owned 17,732 Bitcoins in 2020. When those holdings are combined, Saylor's wealth has increased by nearly $700 million since Sunday.
The last SEC filing dated February 26, 2024 showed that MicroStrategy Inc (NASDAQ:MSTR) CEO and 10% owner Michael Saylor sold 5,000 shares of the company. At a price per share of $765.67, the total value of these shares was $3,828,350 for the transaction. This sale adds 165,000 shares to Saylor's total sales over the past year, with no purchases recorded during the same period.
