Buffett Sheds Millions in VeriSign Shares: What’s Behind the Move?

Warren Buffett’s Berkshire Hathaway has made headlines by selling a massive $1.23B stake in VeriSign. The unexpected move brings Berkshire’s ownership of the internet infrastructure firm down from 14.2% to just 9.6%.

The sale, priced at $285 per share, landed at a steep 6.9% discount compared to Monday’s $305.98 closing price. The result? VeriSign shares tumbled over 6% in after-hours trading as investors absorbed the shock.

Regulatory Strategy Drives the Sale

At the heart of Berkshire’s decision was a shrewd regulatory play. U.S. law requires investors with 10% or more in a company to meet tighter Securities and Exchange Commission (SEC) reporting standards.

By lowering its stake below this threshold, Berkshire circumvents the faster and more frequent disclosure requirements that could potentially influence its future trading decisions.

"The offering is specifically sized to reduce Berkshire Hathaway's beneficial ownership below the ten percent threshold," according to regulatory filings. J.P. Morgan Securities handled the block trade, which was expected to finalize by July 30, 2025.

Did you know?
VeriSign manages the .com and .net domain registries, handling over 350 million domain names worldwide, a key reason its stock draws intense interest from investors.

Profitable Exit After a Decade-Long Bet

Berkshire Hathaway first invested in VeriSign back in 2012, when shares were trading at merely one-sixth their present value. Over 13 years, Buffett’s stake swelled to 13.29 million shares worth over $4B as of March 2025.

This exit represents more than five times the conglomerate's gains, even in light of recent market volatility. Berkshire continued to add shares as recently as January 2025, showing long-term confidence until this strategic downsize.

Immediate Market Reaction and Aftermath

The sheer size of this deal and its discounted price catalyzed a sharp sell-off. To ease market worries and prevent further price drops, Berkshire agreed not to sell any more VeriSign shares for a full 365 days. This lock-up reassures investors that there won’t be another large block sale in the near term.

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Why Does VeriSign Matter to Investors?

VeriSign owns and manages the backbone of the internet, the .com and .net domain registries. This powerful position delivers reliable, recurring revenue from domain registrations and renewals. The firm’s latest financial results even beat Wall Street expectations, posting Q2 earnings per share of $2.21, just ahead of consensus.

What It Means for Tech Investors

Buffett’s market-moving move has reset the conversation around tech stock stakes and regulatory risk. Other institutional investors may now follow suit, re-examining their positions in companies where the 10% threshold looms.

As Berkshire adapts to new reporting realities, the market will watch closely for ripple effects across the sector.

As tighter regulations take center stage, Berkshire’s playbook may become a model for the industry, no matter how bullish you are on tech’s long-term value.