Insider Sells $3.6M in Strategy Stock Just Before Bitcoin Tumble: What Does It Mean?
Barron's2 weeks ago
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Insider Sells $3.6M in Strategy Stock Just Before Bitcoin Tumble: What Does It Mean?

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Summary:

  • Strategy executive Shao Wei-Ming sold $3.6 million in company stock on September 18, just before Bitcoin and crypto stocks fell.

  • The stock sale involved exercising options and selling shares at an average of $355.79, leaving Ming with significant holdings.

  • Strategy's stock dropped 7.4% over four sessions after the Federal Reserve's interest-rate decision, mirroring Bitcoin's decline.

  • Strategy acquired 850 more Bitcoins for $99.7 million, increasing its total to 639,835, reinforcing its role as a Bitcoin treasury company.

Executive Sells Stock Ahead of Bitcoin Slump

A Strategy executive vice president and general counsel, Shao Wei-Ming, sold $3.6 million worth of company stock on September 18, just before Bitcoin's price and crypto-linked stocks experienced a decline.

Details of the Transaction

On September 18, Ming exercised an employee stock option to buy 10,000 shares at $40.46 each and immediately sold them at an average price of $355.79 per share. After these transactions, Ming owned 12,726 class A common shares valued at approximately $4.1 million, plus 19,027 shares of perpetual preferred stock that offer fixed dividends indefinitely.

Market Impact and Context

The sale preceded a drop in Bitcoin prices following the Federal Reserve's interest-rate decision on the same day. Strategy's stock fell 7.4% over four sessions and was down another 5.5% in Thursday trading. Typically, Strategy stock moves in parallel with Bitcoin, which was down 1.8% to $111,373 at the time of publication.

Strategy, which rebranded from MicroStrategy earlier this year, is viewed as a leveraged investment vehicle for Bitcoin exposure. The company continues its aggressive Bitcoin acquisitions, purchasing 850 Bitcoins for $99.7 million between September 15 and September 21, bringing its total holdings to 639,835 Bitcoins.

Note: This article is based on insider trading disclosures required by regulatory bodies.

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