MicroStrategy director Carl Rickertsen recently bought 5,000 shares of the company’s stock, according to a filing made with the SEC on January 12.
This is his first insider purchase since July 2022. Between then and now, records show he had only been selling shares. His last buy before this was more than two years ago, when he picked up 4,000 shares.
The timing of the purchase is drawing attention. It came just days after MicroStrategy avoided being removed from MSCI stock indices. That decision helped calm concerns around the company’s eligibility, at least for now.
Insider buying happens when company leaders or major shareholders legally buy shares of their own company. These trades must be reported to regulators, and many investors view them as a sign of confidence in the business.
MicroStrategy is widely seen as a way to gain exposure to Bitcoin through the stock market. Because of that, its share price tends to move closely with Bitcoin’s price. When Bitcoin goes up, the stock often rises. When Bitcoin drops, the stock can fall hard.
This close link to Bitcoin is also why MSCI had considered removing companies with large crypto holdings from its indices. While no removal has happened yet, MSCI has said the rules are still under review.
Despite the risks, some analysts remain positive. A Clear Street analyst recently lowered the stock’s price target but kept a Buy rating, saying MicroStrategy still offers a unique way to get leveraged exposure to Bitcoin, even after factoring in dilution.
As of January 11, MicroStrategy holds a massive 687,410 Bitcoin. At the time of the report, the company’s stock was trading higher, adding more weight to the significance of Rickertsen’s purchase.
