CTO Timothy Lang Just Bought MicroStrategy (MSTR) Stock. Here’s Why.

  • Senior Executive Vice President and CTO Timothy Lang recently bought $500,000 of MicroStrategy (NASDAQ:MSTR)
  • Director Leslie Rechan also purchased $400,000 of MSTR stock
  • Both transactions were made on May 11
MICROSTRATEGY - sign at headquarters building
Source: DCStockPhotography / Shutterstock.com

Shares of MicroStrategy are in full focus today after Senior Executive Vice President and CTO Timothy Lang and Director Leslie Rechan disclosed insider purchases. The software company, best-known for its massive Bitcoin (BTC-USD) position, is down by around 60% year-to-date (YTD). Meanwhile, BTC is down by more than 35% YTD.

As of March 31, MicroStrategy owned 129,218 BTC. During the first quarter, the company spent around $215 million to buy an additional 4,827 BTC at an average price of $44,645. In total, MicroStrategy’s Bitcoin stake was worth a market value of $5.9 billion at the end of Q1. Today, the BTC crypto trades just above $30,000.

Despite the selloff, MicroStrategy seems to still hold heavy conviction in Bitcoin. As CFO Andrew Kang recently said, “At this time, we do not have any intention to sell […] There are no scenarios that I’m aware [in which] we would sell.”

Kang also said the company has not faced pressure from shareholders to reduce its BTC position. So, that in mind, let’s jump into the details of the MSTR stock insider transactions.

MicroStrategy Insiders Buy MSTR Stock

On May 11, Lang purchased 2,500 shares of MSTR stock at an average price of $200 per share. In total, the transaction amounted to $500,000. After the purchase, Lang owns a total of 2,708 shares of the company.

On the same day, Rechan also purchased 2,000 shares of MicroStrategy at average prices ranging between $204.37 and $205.10. In total, the purchase amounted to just over $400,000. In addition, it should be noted that Rechan purchased the shares through a family trust. Rechan and two of his children serve as trustees. Before the purchase, Rechan did not own any shares in MSTR.

How Do Other Insiders View MicroStrategy?

So, how do other insiders feel about the company? In the past 12 months, insiders have only purchased 4,500 shares of MicroStrategy. These purchases are attributable to Lang and Rechan’s recent transactions. Meanwhile, insiders have sold 97,757 shares in the past 12 months. This is certainly not a positive indicator, but it does suggest that insiders are starting to get more bullish.

Meanwhile, MicroStrategy CEO Michael Saylor remains committed to Bitcoin. The CEO expects the cryptocurrency to “go into the millions.” Saylor believes that Bitcoin is the “future of money.”

Either way, MicroStrategy is essentially putting its business on the line for BTC. Only time will tell whether it has made the right decision.

On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Eddie Pan specializes in institutional investments and insider activity. He writes for InvestorPlace’s Today’s Market team, which centers on the latest news involving popular stocks.

Article printed from InvestorPlace Media, https://investorplace.com/2022/05/cto-timothy-lang-just-bought-microstrategy-mstr-stock-heres-why/.

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