Michael Saylor’s Bitcoin Bet Pays Off: MicroStrategy Founder Earns $400 Million
MicroStrategy Inc.’s Michael Saylor Rakes in $400 Million from Bitcoin Bet
Michael Saylor’s bold decision to start buying Bitcoin back in 2020 has proven to be a lucrative move for the co-founder and executive chairman of MicroStrategy Inc. This year alone, Saylor has reportedly earned an estimated $400 million from pre-planned daily sales of about 5,000 shares of the enterprise software company.
The stock of MicroStrategy has doubled this year to around $1,290, surpassing the gains of the original cryptocurrency during the same period. Saylor’s share sales follow the exercising of options awarded in 2014, which were set to expire. At the end of 2014, MicroStrategy was trading at around $160.
Despite concerns from investors that Saylor may be selling at the peak, the outperformance of MicroStrategy’s stock seems to be negating those worries. Saylor, who is the controlling shareholder of the company, has stated that exercising the options will allow him to address some obligations as well as buy more Bitcoin for his own account.
However, the premium that MicroStrategy is receiving over Bitcoin has raised some eyebrows, especially after the introduction of US exchange-traded funds that can hold the cryptocurrency. Some investors are questioning why one would buy MicroStrategy with a premium over spot when they can simply buy the ETFs.
In the meantime, MicroStrategy reported a first-quarter loss of $53 million after taking an impairment charge against the value of its Bitcoin holdings, despite the surge in the cryptocurrency’s price during the period. The company’s Bitcoin holdings have increased to around $13.5 billion, with Saylor’s strategy being to sell equity or debt and buy more Bitcoin as the digital asset’s value rises.
Overall, Saylor’s bet on Bitcoin has paid off handsomely, and MicroStrategy’s stock continues to perform well, defying traditional fundamentals and trading purely on investor sentiment. With the value of Bitcoin holdings increasing and Saylor’s strategy proving successful, the future looks bright for MicroStrategy and its cryptocurrency investments.
