Rep. Shri Thanedar files 2024 MicroStrategy (MSTR) stock purchase nearly 1 year late after 193% gain

In the realm of financial markets, the intersection of politics and investment often raises eyebrows, particularly when it comes to compliance with disclosure rules. Recent scrutiny has highlighted instances where US congressional members have filed stock transactions well beyond mandated deadlines, potentially undermining market transparency. One such case involves a 2024 purchase of shares in Strategy Incorporated (formerly MicroStrategy, ticker: MSTR), a company whose aggressive bitcoin strategy has propelled its stock to remarkable gains. This delay in reporting, nearing a year past the 45-day window required by the STOCK Act, underscores broader concerns about enforcement and the advantages that timely information can confer in volatile sectors like cryptocurrency-linked equities.

The STOCK Act and Its Implications for Market Integrity

The Stop Trading on Congressional Knowledge (STOCK) Act of 2012 was designed to prevent members of Congress from profiting on non-public information gained through their official duties. It mandates that lawmakers disclose stock trades exceeding $1,000 within 45 days, promoting transparency and curbing insider trading. Yet, enforcement has been patchy, with numerous violations surfacing in recent years. According to data from financial oversight platforms, delays in filings have become a recurring issue, often involving high-profile stocks that experience significant price swings post-purchase.

In the context of 2024, several congressional trades drew attention due to their tardiness. For instance, purchases of technology and crypto-related stocks were reported months or even close to a year late, coinciding with periods of substantial market appreciation. Such lapses not only violate the spirit of the law but also fuel debates on whether elected officials enjoy an uneven playing field. Investors, meanwhile, must navigate these revelations, weighing them against broader market dynamics.

Spotlight on Strategy Incorporated (MSTR)

Strategy Incorporated, which rebranded from MicroStrategy in August 2025, stands out as a prime example of a stock entangled in these discussions. The company has transformed itself into a bitcoin treasury play, amassing a substantial cryptocurrency portfolio that now dominates its valuation. As of the latest available data on 12 August 2025, MSTR trades at $395.94 on Nasdaq, reflecting a day’s change of -4.31 (-1.08%) from a previous close of $400.25. Its 52-week range spans from $113.69 to $543.00, with a staggering 195.65% increase over that period, highlighting the volatility tied to bitcoin’s fortunes.

Historical context reveals MSTR’s meteoric rise in 2024. The stock surged approximately 477% that year, outpacing most US equities, driven by bitcoin’s rally amid favourable political developments, such as the so-called ‘red sweep’ following the US elections. CNBC reported in December 2024 that MicroStrategy had acquired over one-third of its then-439,000 bitcoin holdings post-election, capitalising on market optimism. This performance made MSTR a magnet for investors, including those in political circles, but also amplified the impact of any delayed disclosures.

A hypothetical late-filed purchase in 2024, when the stock was at lower levels, could have appreciated by around 193% by mid-2025, based on price trajectories. Such gains, if not promptly disclosed, raise questions about accountability. The company’s market capitalisation stands at $112.27 billion as of 12 August 2025, with 263.91 million shares outstanding and a price-to-book ratio of 2.34, underscoring its premium valuation relative to its book value of $168.98 per share.

Broader Trends in Congressional Trading and Violations

Analysis from sources like Unusual Whales’ 2024 Congress Trading Report indicates that congressional members often outperform the market, with some portfolios yielding returns that eclipse benchmarks. The report, published in January 2025, detailed trading patterns and unusual activities, suggesting that access to privileged information might play a role. While not all trades violate the STOCK Act, the frequency of late filings—sometimes by months—has prompted calls for stricter penalties.

In 2024 and into 2025, violations spanned various sectors, but tech and crypto stocks like MSTR featured prominently due to their volatility. For example, filings revealed purchases that aligned with bitcoin’s ascent, only disclosed after substantial appreciation. This pattern has led to investor sentiment shifting towards scepticism, with some analysts labelling it a systemic flaw. Credible sources, such as the Congress Trading Report, mark overall sentiment among oversight groups as cautious, emphasising the need for reform to ensure fair markets.

Investor Implications and Analytical Insights

For investors eyeing MSTR, these regulatory hiccups add a layer of complexity. The stock’s performance is inextricably linked to bitcoin, with the company’s $42 billion capital plan announced in October 2024 aimed at further bitcoin acquisitions through debt and equity offerings. By Q3 2024, MicroStrategy had raised $1.1 billion via at-the-market equity sales, part of a strategy that has diluted shares but amplified its crypto exposure.

Looking ahead, analyst models project mixed fortunes. Forward EPS is estimated at -0.43, yielding a P/E ratio of -920.78, signalling potential losses, while current-year EPS stands at 94.23 with a P/E of 4.20. Ratings aggregate to a ‘Buy’ consensus of 1.6, reflecting optimism tied to bitcoin’s long-term trajectory. However, risks abound: a class action lawsuit filed in July 2025 by Pomerantz LLP alleges misleading statements on the bitcoin strategy, as reported by AiCoin, which could pressure the stock.

Insider activity provides further clues. Yahoo Finance noted in July 2025 that MicroStrategy insiders sold $3.1 million in shares over the prior year, suggesting hesitancy at elevated levels. Earlier, in March 2025, sales totalled $2.1 million, per similar reports. Conversely, Q1 2025 saw some insider buys, indicating selective confidence.

From a forecasting perspective, if bitcoin sustains its upward trend—analysts at firms like Bernstein predict it could reach $200,000 by 2025—MSTR might benefit disproportionately due to its leveraged position. Yet, regulatory scrutiny on congressional trades could invite broader investigations, potentially affecting market confidence. Investors should monitor SEC filings closely, as delays in any quarter can signal underlying issues.

Navigating Volatility and Compliance

The allure of stocks like MSTR lies in their high-reward profile, but the shadow of STOCK Act violations serves as a reminder of the need for vigilance. As of 12 August 2025, the stock’s 50-day average is $396.96, with a slight -0.26% change, and its 200-day average of $349.53 shows a 13.28% gain, pointing to sustained momentum despite recent dips.

In conclusion, while MSTR’s bitcoin bet has delivered outsized returns—evidenced by its 52-week high of $543.00—the entanglement with delayed congressional disclosures highlights systemic risks. Strengthening STOCK Act enforcement could level the playing field, benefiting retail investors. For now, those considering positions in such assets must blend fundamental analysis with an eye on regulatory developments, ensuring decisions are grounded in transparent data rather than speculative advantages.

References

• CNBC. (2024, December 23). MicroStrategy rides ‘red sweep’ to 477% gain in 2024, topping almost all U.S. stocks. https://www.cnbc.com/2024/12/23/microstrategy-rides-red-sweep-to-477percent-gain-in-2024-topping-almost-all-u-s-stocks.html
• Unusual Whales. (2024). Congress Trading Report 2024. https://unusualwhales.com/congress-trading-report-2024
• Strategy Incorporated. (2024, October 30). MicroStrategy announces third quarter 2024 financial results and $42 billion capital plan. https://www.strategy.com/press/microstrategy-announces-third-quarter-2024-financial-results-and-announces-42-billion-capital-plan_10-30-2024
• Yahoo Finance. (2025, July). MicroStrategy insiders sold US$3.1 million in shares. https://finance.yahoo.com/news/microstrategy-insiders-sold-us-3-130031104.html
• Yahoo Finance. (2025, March). MicroStrategy insiders sold US$2.1 million in shares. https://finance.yahoo.com/news/microstrategy-insiders-sell-us-2-120014527.html
• AiCoin. (2025). Pomerantz LLP files class action against MicroStrategy. https://aicoin.com/en/article/475908
• Marketscreener. (2025). Insider sold shares worth $21,419,696. https://www.marketscreener.com/quote/stock/STRATEGY-INCORPORATED-10105/news/Microstrategy-Insider-Sold-Shares-Worth-21-419-696-According-to-a-Recent-SEC-Filing-50499369/
• StockStory. (2025, July 14). MicroStrategy (MSTR) stock is up – what you need to know. https://markets.financialcontent.com/stocks/article/stockstory-2025-7-14-microstrategy-mstr-stock-is-up-what-you-need-to-know
• Nasdaq. (2025). MicroStrategy sees insider buy/sell action – Q1. https://www.nasdaq.com/articles/microstrategy-sees-insider-buy-sell-action-q1
• Medium. (n.d.). All your models are destroyed: The rise and future fall of MicroStrategy. https://medium.com/@bdratings/all-your-models-are-destroyed-the-rise-and-future-fall-of-microstrategy-5916dd3c0021
• SEC. (n.d.). Administrative proceedings. https://www.sec.gov/enforcement-litigation/administrative-proceedings/34-43724
• AInvest. (2025). MicroStrategy Q2 2025 earnings: Record net income. https://ainvest.com/news/microstrategy-2025-q2-earnings-record-net-income-surges-9-870-2508
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