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Executives cash out, transfer equity, and are suspected of selling bitcoin through a “shadow company”. The story of MicroStrategy “All in Bitcoin” may not be as simple as imagined.
Original title: “Bitcoin: This might be the story behind MicroStrategy execs offloading stocks”
Written by: Shraddha Sharma
Translation: Blockchain Knight Editor: Eric
After multiple rounds of accumulation, MicroStrategy became the listed company with the largest number of bitcoins a few months ago. According to data on the Bitcoin chain, as of press time, MicroStrategy holds 108,991 Bitcoins.
On the contrary, according to documents submitted to the stock exchange at the end of the month, there have been some changes in the equity of MicroStrategy executives . According to Bloomberg News, MicroStrategy’s chief financial officer and chief technology officer each sold $7 million in stock last month.
At the same time, in the Crypto field, the top eight executives are expected to earn approximately US$175 million in just one year.
The timing is very interesting, especially for Bitcoin advocates, MicroStrategy CEO Michael Saylor is still promoting cryptocurrency on social media.
In the strong rebound of cryptocurrencies last month, MicroStrategy’s CFO Phong Le and CTO Lang Timothy Edwin exercised their stock options . A similar situation occurred in April. In fact, before Bitcoin reached its all-time high in April, Saylor announced,
“The salary of the MicroStrategy board is now paid in Bitcoin.”
This report attracted the attention of Whale, a popular cryptocurrency evangelist, who believes that Saylor and his executives are implementing a classic “pump-and-dump” strategy .
It is worth noting that CEO Saylor himself has not sold any shares.
Whale believes that Saylor is actually transferring MicroStrategy’s BTC to an “opaque” limited liability company to avoid attracting public attention.
Mr. Whalestated on Twitter, “Michael Saylor urges everyone to buy bitcoin at a price of $51,000 today. However, he transferred all of MicroStrategy’s bitcoin to a shadow company, which means that he can now file without filing with the SEC. Under circumstances . My guess is that Saylor is selling his Bitcoin holdings to those he is actively trying to attract.”
According to data from the American Stock Exchange, Saylor transferred 50,000 Class A shares of the company to Alcantara LLC at the end of last year. The transaction was classified as a “gift to a charitable foundation,” and supervision was avoided.
Since 2020, Saylor has been actively investing in Bitcoin as the “main fiscal reserve asset” . Bitcoin now occupies a large part of the company’s capital, so that the company’s stock price has a tendency to imitate Bitcoin.
Now, although both MicroStrategy stock and Bitcoin have seen substantial growth in the past year, have the points of concern have changed?
In the past, Saylor has shown that he is a Bitcoin holder and he would not sell Bitcoin even in a downward trend. However, the company’s executives would not agree with the “hoarding” of debt financing . When they believe that the fair value of Bitcoin is lower than the current market price, they will choose to sell without hesitation.
We have entered the last quarter of 2021, and selling Bitcoin can be understood as thinking about the expected consolidation. However, one may need to ask if Michael Saylor is really a strong supporter as he said. Since 2013, his Twitter has shown that he is not always that inclined to use Crypto.
However, for now, Saylor seems to be satisfied with the company’s Bitcoin holdings. In fact, he shared the joy of choosing Bitcoin over gold in a recent tweet recently.
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