Rothberg’s 10b‑5‑1 Plan Drains 41 % of Butterfly Network Stake as Shares Surge 10.7 % Amid AI‑Driven Growth Push

Insider Selling Momentum at Butterfly Network

On January 6, 2026, Dr. Jonathan M. Rothberg, the managing partner of several 4C Holdings entities, executed a Rule 10b‑5‑1 trading plan that saw 351,617 Class A shares change hands. The sale was completed at an average price of $4.03, slightly below the market close of $4.21. The following day, a second tranche of 452,729 shares sold for $4.14, followed by a final block of 335,834 shares on January 8 that closed the week at $4.18. The cumulative sale volume of 1,139,170 shares represents roughly 41 % of Rothberg’s remaining stake in the company, a sizeable depletion of a major shareholder’s position.

What the Numbers Mean for Investors

The timing of these sales coincides with a sharp weekly gain of 10.7 % and a 33.9 % month‑to‑date rally for Butterfly Network. While the shares have climbed from a low of $1.32 to a high of $4.98 over the past 52 weeks, the company’s negative P/E of –11.91 signals ongoing profitability challenges. Rothberg’s divestiture could be interpreted as a portfolio rebalancing or an opportunistic liquidation as the stock approaches a technical resistance near the 52‑week high. For long‑term holders, the sale may raise short‑term liquidity concerns, but the company’s continued investment in AI‑driven imaging technology and the recent expansion of its Butterfly Garden platform suggest a longer‑term upside trajectory.

Rothberg’s Insider Profile

Dr. Rothberg’s trading pattern over the past two months is characterized by systematic, rule‑based sales rather than ad‑hoc moves. Since December 24, 2025, he has sold more than 2.5 million shares at prices ranging from $3.07 to $4.14, averaging $3.74 per share. The sales are executed through a 10b‑5‑1 plan adopted in March 2025 for estate‑planning purposes, indicating a pre‑planned divestiture rather than a reaction to insider information. Historically, Rothberg has maintained a substantial holding of both Class A and Class B shares, with 2.88 million A shares and 4.71 million B shares still on the books. His pattern of incremental selling at progressively higher prices suggests a disciplined exit strategy aimed at capturing upside while protecting downside.

Company‑Wide Insider Activity Context

Butterfly Network’s other insiders have also been active. Chief Technology Officer Victor Ku sold 35,968 shares on January 5, 2026, for $3.82, a modest dip below the current price. The most recent insider activity, however, is dominated by Rothberg’s large, rule‑based sales, dwarfing other trades in volume and value. This concentration of selling from a single entity could temporarily compress the supply‑demand balance, potentially tightening the bid–offer spread until the market absorbs the new liquidity.

Outlook for Stakeholders

For investors, the key question is whether the share price can sustain its recent rally after the influx of new shares into the market. Technical analysis points to a resistance zone around $4.90, and the company’s fundamentals still show negative earnings and a high price‑to‑book multiple. Nonetheless, the strategic push into AI‑enabled, portable ultrasound devices and the expansion of the Butterfly Garden ecosystem could unlock new revenue streams. As Rothberg continues to liquidate his position, shareholders should monitor trading volumes and sentiment—currently high at 41 % buzz—to gauge whether the market views the sales as a sign of confidence or a warning signal.

In sum, Rothberg’s disciplined 10b‑5‑1 plan is draining a significant stake at a price that is only slightly below recent highs. While the immediate impact may be a short‑term supply shock, the long‑term trajectory of Butterfly Network will hinge on its ability to monetize its technology and navigate a challenging profitability landscape. Investors should weigh the potential for short‑term volatility against the company’s strategic positioning in an expanding portable imaging market.