MicroStrategy Inc. (NASDAQ:MSTR) director Leslie J. Rechan has executed a significant sale of company shares, amounting to approximately $12 million, as per a recent SEC filing. The transactions were disclosed on Wednesday.
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What Happened: Rechan exercised stock options to acquire 40,000 shares of MicroStrategy’s Class A common stock on Nov. 7 and Nov. 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 Nov. 7, Rechan sold 11,171 shares at an average price of $275.04 and 8,829 shares at $275.80. On Nov. 11, he sold 17,800 shares at $325.23 and 2,200 shares at $326.60. The total value of these transactions reached approximately $12 million.
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MicroStrategy stock is considered an alternative to Bitcoin.
Despite these sales, Rechan retains 4,970 shares directly and holds indirect ownership of 20,000 shares through the Meredithe Rechan 2021 Family Trust. The August stock split significantly reduced the exercise price of Rechan’s options, enhancing the profitability of these transactions.
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Why It Matters: The timing of the share sale coincides with a period of heightened activity for MicroStrategy. Recently, the company’s shares have been trading higher, driven by the surge in Bitcoin (CRYPTO: BTC) prices, which reached new all-time highs over the weekend. MicroStrategy, known for its substantial Bitcoin holdings, announced raising $2 billion to purchase more Bitcoin, aligning with the cryptocurrency’s rally.
Bitcoin’s price climbed to $80,000 for the first time on Sunday and continued to rise, trading around $81,870 on Monday morning, marking an 18.5% increase over the past week. This surge follows the election of Donald Trump, who is perceived as a pro-crypto candidate, potentially creating a more favorable regulatory environment for cryptocurrencies.
