“We will use part of the profits from selling our own stock to buy more Bitcoin” Saylor, Chairman of MicroStrategy

10 months ago 49

Buy more bitcoins

Michael Saylor, chairman of MicroStrategy, a listed US company that owns a large amount of the crypto asset (virtual currency) Bitcoin (BTC), will sell a total of 315,000 shares of the company’s stock (equivalent to 30 billion yen).

He plans to exercise his stock options in MicroStrategy and sell his shares over a period of about four months, from the 2nd of this month to April. During the financial results report for the third quarter of 2023 (July to September), he said that he would use part of the profits from this sale to buy more Bitcoin as an individual.

What is stock option?

The right for a company’s employees to acquire company stock at a predetermined price. If you exercise your right to purchase your own company’s stock by paying money when the stock price rises, and then sell the stock, you can make a profit.

Virtual currency glossary

According to data from the U.S. Securities and Exchange Commission (SEC), the company plans to sell 315,000 shares, but its 2023 Q3 filing (Form 10-Q) indicates it will sell up to 400,000 shares by April 26th. was. The company also explained that it plans to sell 5,000 shares a day on each trading day.

The company’s stock price, which holds a large amount of Bitcoin, will rise in 2023 in line with the Bitcoin price. According to Trading View, the company’s stock price has increased over 333% year-on-year. Additionally, Bitcoin prices have increased over 156% year-on-year.

connection: TOP 20 virtual currency market capitalization and domestic tokens, fluctuation rate in 2023

Comparison with ETFs

MicroStrategy announced on the 27th of last month that it had purchased more Bitcoin. At the time of writing this article, the company holds 189,150 BTC as assets.

connection: MicroStrategy bought $615 million worth of virtual currency Bitcoin in December

Since the beginning of this year, the examination of physical ETFs (exchange traded funds) in the United States has been attracting even more attention to Bitcoin. Many believe that multiple physical ETFs will be approved this month.

Until now, the company’s stock has been seen as an alternative to Bitcoin ETFs, and some have said that if the SEC approves a physical ETF, MicroStrategy’s stock price will become less attractive as an investment.

In this regard, Saylor argued last month that Bitcoin ETFs do not threaten to make the company’s stock less attractive. He explains, “Bitcoin ETFs are unleveraged and charge fees. Our stocks, on the other hand, offer leverage but do not charge fees.”

connection: “Bitcoin ETF is not a threat to the company’s stock” MicroStrategy Chairman Thaler