The Impact of BTC ETFs on MicroStrategy Stock
The approval of nine spot Bitcoin (BTC) exchange-traded funds (ETFs) in the U.S. triggered a significant reaction among investors. Concerns quickly arose regarding the potential impact of these listings on stocks, particularly on Michael Saylor’s MicroStrategy (NASDAQ: MSTR). This worry was not unfounded, at least initially, as evidenced by a dramatic 20% drop in MicroStrategy’s stock value over a 48-hour period in January, indicating a mass sell-off by investors.
However, the fears have since been proven unwarranted as Bitcoin’s price surge led to MSTR stock skyrocketing even faster - despite the competition from BTC ETFs - and few have benefitted from the 116% year-to-date rise as quickly and fully as certain MicroStrategy insiders.
Insider Sales at MicroStrategy
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Among the insiders, Michael Saylor, the executive chairman, has sold the most MSTR shares. Since the start of the year, Saylor offloaded more than $150 million worth of the stock and as much as $23 million in the last week.
Multiple other senior officials of the company have also been making extensive sales in recent months. Jeanine Montgomery, SVP & CAO, for example, sold $1 million worth of MSTR shares on March 1, and Phong Le, the president and CEO, offloaded nearly $10 million on the same day. Carl Rickertsen, a director at MicroStrategy, also made a massive sale of 12,000 shares on February 14, worth more than $8 million at the time.
MicroStrategy Stock Performance
While significant insider sales are often the herald of a major downturn and, given the company’s recent stock market performance, some are beginning to worry whether a MicroStrategy stock crash is incoming, MSTR has yet to show a sign of slowing down.
Despite starting the year slow - and even declining for a time - MicroStrategy shares are 116.63% in the green since 2024 started. A similar strength is observable in the last 30 days and the last 7 days of trading as the stock is up 106.86% and 19.72% respectively in the time frames.
The latest trading session was, however, fairly volatile but MSTR managed to end the day’s trading 4.11% in the green at $1484.23. Finally, MicroStrategy is also on the rise in Tuesday’s premarket, and the stock is 4.69% up by the time of publication.
MicroStrategy’s BTC Holdings
A possible reason for MicroStrategy’s strong extended-hours performance is that the company has proven undeterred by Bitcoin’s setting new all-time highs, having found a footing near $72,000.
Michael Saylor’s firm has, on March 11, acquired 12,000 additional BTC for just under $822 million meaning that Microstrategy Bitcoin holdings now exceed 200,000 coins.
