Multi-billionaire Jeff Bezos continues to divest from Amazon, with recent share sales surpassing the $4 billion mark. As the executive chair of the technology giant he founded in 1994, Bezos has offloaded a total of 24 million Amazon shares this month alone. Bezos hasn’t disclosed the reason for his current share sell-off, but insights from his trading plan initiation in November could offer a hint; his announcement of relocating to Miami from Seattle on November 2 aligns with the adoption of a 10(b)5-1 plan on November 8.
The implementation of a 7% capital gains tax in Washington state in 2022, absent in Florida, where Bezos now resides, suggests potential tax savings for him, estimated at $288 million thus far. Considering Bezos has held a single share of Amazon since its inception, it’s reasonable to assume that nearly the entire value of his shares qualifies as capital gains.
Bezos’s Ongoing Amazon Shares Sell-off
Bezos initiated the sale of 50 million shares earlier this month in a strategic move, valued at approximately $8.4 billion at current market prices. The first tranche of this sale, consisting of 12 million shares, was disclosed in a regulatory filing on Friday, followed by a subsequent announcement of another 12 million shares on Tuesday. Having relocated from Seattle, Washington, to Miami, Florida, Bezos strategically avoids tax implications on his recent gains. In Washington state, gains above $250,000 from stock sales are taxed at 7%, potentially incurring a tax bill of around $280 million had Bezos not made the move.
Blue Origin and Personal Connection to Miami
Bezos cited personal reasons for his move to Miami, expressing a desire to be close to his parents and his Blue Origin space project, which is increasingly centered around Cape Canaveral. The billionaire, along with his fiancée Lauren Sánchez, emphasized their love for Miami in an Instagram post in November, further firming their commitment to the vibrant city. Despite notable share sell-offs, Jeff Bezos remains Amazon’s largest shareholder and one of the wealthiest individuals globally, boasting an estimated fortune exceeding $190 billion. As he strategically reshapes his investment portfolio, the financial world keenly observes Bezos’s moves and their impact on the e-commerce giant he founded.
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