March 28, 2024

$MSTR Microstrategy – Bitcoin company + small business

The company's shares follow the Bitcoin ₿ rate because it owns a huge amount of them.

microstrategy $MSTR - a bitcoin company

On the pictureCEO of Microstrategy, in 2013 he tweeted that Bitcoin is a scam and complete crap, and now he personally owns >17 thousand bitcoins.

According to the third quarter report, they own ₿38,250, with the average value for the company being $11,000 (a total of $425 million), and the current value of Bitcoin is $19,530.
Now all this stuff is worth $746 million.
Interestingly, it turns out that due to the mainbusiness, the company earned $78 million in 3.5 years, and $232 million in a month due to the growth of bitcoins. Although, of course, this is all paper profit. Square $SQ also owns a decent amount of Bitcoin, but several times less.

Now let's look at the behavior of this company's insiders.
Yesterday three transactions were published on the SEC websiteabout this company, which a few minutes after publication were read by the parser, added, translated and republished in the corresponding Telegram channel.
It turned out that two insiders(VP-Counsel and VP-CTO) were happily selling shares at $270-$277 for $5.2 million three to five days before the Bitcoin rocket and the company's shares.
This growth has nothing to do with the company’s core business and few can predict the movement of Bitcoin, so there is nothing special about insiders selling shares even for a large amount.

Don't pay too much attention to these deals,since top managers on the same day received options at ~ $ 161 per share under the employee motivation program (bonuses) and immediately sold them for $ 110 more. SBER $ SBER will start doing the same options program. This is a very good practice as the larger the company, the easier it is to do nothing. And owning a part of the company and getting the opportunity to sell or buy shares after some time (for example, a year) or after achieving some merit - all this affects employees in terms of their motivation. For example, in Google, employees receive good blocks of shares for their seniority - this motivates them not to leave the company.

All Microstrategy insiders (exceptone dude), having bought back the shares under the option, they are immediately resold, considering it as a salary or a bonus for work. Many other insiders do the same. It happens that they buy back and then hold or sell half of the shares received. In any case, such transactions do not carry any information load, and in the near future I will update the parser so that it starts discarding them in the same way as it already does with calendar transactions? (rule 10b5-1).