Microstrategy CFO Andrew Kang sells $719,441 in stock

Published 26/03/2025, 21:16
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Andrew Kang, the Executive Vice President and Chief Financial Officer of MicroStrategy Inc . (NASDAQ:MSTR), executed a series of stock transactions on March 24, 2025. According to a recent SEC filing, Kang sold a total of 2,185 shares of MicroStrategy’s Class A Common Stock, with sale prices ranging from $329.08 to $329.67 per share. The transactions resulted in a total sale value of approximately $719,441. The stock, which has shown significant volatility according to InvestingPro data, has delivered an impressive 82% return over the past year, with the company now commanding a market capitalization of $85.5 billion.

These sales were part of a Rule 10b5-1 instruction letter entered into on May 2, 2024, designed to satisfy tax withholding obligations upon the vesting of previously granted equity awards. Following these transactions, Kang holds 15,215 shares of MicroStrategy’s Class A Common Stock directly.

Additionally, Kang acquired 5,320 shares of Class A Common Stock through the vesting of restricted stock units, which were acquired at no cost. The remaining restricted stock units will vest in annual installments over the next three years.

In other recent news, MicroStrategy Incorporated has announced the issuance of a new class of preferred stock, the "10.00% Series A Perpetual Strife Preferred Stock," amounting to 8.5 million shares. This stock carries an annual dividend rate of 10%, with potential increases if dividends are not paid on time. The company has also successfully raised net proceeds of approximately $592.6 million from selling 1,975,000 shares of its Class A common stock and $1.1 million from 13,100 shares of its 8.00% Series A perpetual preferred stock. These proceeds were used to acquire approximately 6,911 bitcoins, bringing MicroStrategy’s total holdings to about 506,137 bitcoins.

Further, MicroStrategy announced a $711.2 million preferred stock offering, set to close soon, with plans to use the funds for general corporate purposes, including additional Bitcoin acquisitions. Analyst firm Bernstein SocGen Group has reiterated an Outperform rating for MicroStrategy, maintaining a price target of $600. The firm’s positive outlook considers the company’s expanded Bitcoin holdings and its strategic capital structure. Meanwhile, Monness Crespi Hardt initiated coverage with a Neutral rating and a $200 price target, expressing concerns about potential market saturation.

MicroStrategy’s aggressive approach to integrating Bitcoin into its financial strategy has made it a significant player in the cryptocurrency market. The company’s recent financial activities and stock sales reflect its commitment to leveraging Bitcoin as a core component of its business model.

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