MicroStrategy Inc. (NASDAQ:MSTR) CEO Leslie J. Rechan has conducted a significant sale of company stock, amounting to approximately $12 million, according to a recent SEC filing. The transactions were announced on Wednesday.
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What happened: Rechan exercised stock options to acquire 40,000 shares of MicroStrategy Class A common stock on November 7 and 11, 2024. The adjusted exercise prices were $12.746 and $12.957 per share, following a 10-for-1 stock split in August. Originally these prices were $127.46 and $129.57.
On November 7, Rechan sold 11,171 shares at an average price of $275.04 and 8,829 shares at $275.80. On November 11, he sold 17,800 shares at $325.23 and 2,200 shares at $326.60. The total value of these transactions was approximately $12 million.
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MicroStrategy shares are considered an alternative to Bitcoin.
Despite these sales, Rechan directly retains 4,970 shares and indirectly owns 20,000 shares through the Meredithe Rechan 2021 Family Trust. The stock split in August significantly reduced the strike price of Rechan’s options, increasing the profitability of these trades.
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Why it’s important: The timing of the stock sale coincides with a period of increased activity for MicroStrategy. Lately, the company’s shares have been trading higher, driven by the surge in prices Bitcoin (CRYPTO:BTC) prices, which reached new all-time highs this weekend. MicroStrategy, known for its significant Bitcoin holdings, announced it would raise $2 billion to buy more Bitcoin, in line with the cryptocurrency’s rally.
Bitcoin’s price climbed to $80,000 for the first time on Sunday and continued to rise, with the price trading around $81,870 on Monday morning, up 18.5% from the past week. This increase follows the election of Donald Trumpwhich is seen as a pro-crypto candidate, potentially creating a more favorable regulatory environment for cryptocurrencies.
