Kash Patel's Undisclosed Strategy Stock Buy Down 44% Since November
In brief
- Patel purchased $100,000–$250,000 of Strategy stock November 21 without initial disclosure
- Financial disclosure form amended in late May, claiming omission was inadvertent
- Strategy stock fell 44% since purchase, from $181 to $100.55 per share
- Federal law requires FBI directors report securities transactions above $1,000 within 45 days
The Undisclosed Purchase
Patel made a sizable, previously undisclosed investment in Strategy, a Bitcoin treasury firm founded by Michael Saylor, in November. He purchased between $100,000 and $250,000 worth of stock on November 21, when Strategy was trading around $181 per share.
The purchase should have been reported in a financial disclosure form signed by Patel in early December. It wasn't. Under federal law, certain government employees, the FBI director included, must report securities transactions above $1,000 within 45 days.
Patel didn't initially disclose the transaction. He amended his required disclosure form in late May to include the Strategy purchase, claiming the omission was inadvertent.
The Collapse
Strategy stock has collapsed over 44% since Patel's investment, falling to $100.55. That means his position has lost him anywhere between $44,000 and $110,000, assuming he hasn't sold.
The broader decline reflects Bitcoin's weakness and Strategy's own struggles. Bitcoin's price has fallen over 41% in the last year, from over $106,000 to $61,933. Strategy itself has collapsed over 77% from its peak of above $442 last summer. Analysts recently slashed Strategy price targets from $400 to $260, citing Bitcoin's observed ongoing weakness.
Despite the stock's decline, Strategy remains Wall Street's most prominent crypto treasury firm. The company has stockpiled over 847,000 BTC, worth over $52 billion at current prices.
