MicroStrategy director sells company shares ahead of earnings
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Strategy (Nasdaq: MSTR), formerly MicroStrategy, is the world's largest Bitcoin (BTC) treasury company.
Led by billionaire founder Michael Saylor, the company holds 818,334 Bitcoin worth $66.67 billion now. Though the company skipped buying any BTC last week, it is still the leading Bitcoin treasury company.
Related: Why Saylor skipped Bitcoin buy this week
The company uses the proceeds from the sale of its common and preferred stocks for weekly Bitcoin buys.
Though the company's deployment of the Stretch or STRC preferred stock has raised eyebrows, Benchmark analyst Mark Palmer recently dismissed any claims of it being a "Ponzi scheme."
The company is expected to report its next quarterly earnings after the market closes on May 5, ahead of which a board director sold company shares.
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Strategy director sells 4,000 shares
Jarrod Patten has been a member of Strategy's board of directors since 2004. As per the Form 4 filed with the Securities and Exchange Commission (SEC), he sold 4,000 shares of the MSTR stock worth $676,200 between Apr. 30 and May 1.
- Apr. 30: 1,750 shares worth $285,555
- May 1: 2,250 shares worth $390,645
Insider selling is a standard market practice in which a company executive or a major shareholder legally sells shares of their own company in the open market.
It is required by the SEC to report such sales to the securities regulator, including details such as the stock sale price, number of shares sold, and date of the sale.
Such sales shouldn't necessarily be read as an indication of low confidence among top leaders in the company's prospects. Executives sell their shares for a variety of purposes such as portfolio diversification, taxes, etc.
Patten still holds 28,000 MSTR shares and other shares of preferred stocks.
Despite the volatility in the market, the MSTR stock has gained more than 20% this year. It was exchanging hands at $187.60 at the time of writing, up 2% in a day.
