MicroStrategy buys even more bitcoin

MicroStrategy, a US business intelligence company and the largest corporate holder of bitcoin, has purchased additional BTC, thereby increasing its bitcoin stash.

MicroStrategy revealed an addition of 2,500 BTC to its stash in a filing to the US Securities and Exchange Commission (SEC) dated Dec.28. The purchases were done through its wholly-owned subsidiary, MacroStrategy.

The company also sold a few of its bitcoins, but the overall purchases represent a net gain to its holdings.

MicroStrategy grows bitcoin stash to 132,500

According to the business intelligence giant, MicroStrategy purchased 2,395 BTC worth around $42.8 million, between Nov.1 and Dec.21. The bitcoins were acquired at an average price of $17,871 per token.

On Dec.22, there was a sale of 704 bitcoin, worth approximately $11.8 million. The filing noted that the company sold the bitcoin for possible tax benefits. Notably, the sale marks the first time that MicroStrategy is selling since its first purchase in August 2020.

“MicroStrategy plans to carry back the capital losses resulting from this transaction against previous capital gains, to the extent such carrybacks are available under the federal income tax laws currently in effect, which may generate a tax benefit”

MicroStrategy, via filing

Shortly after the sale, MicroStrategy made another purchase of 810 BTC on Dec.24, for $13.6 million. Meanwhile, the proximity of the sale and the purchase does not qualify as ‘wash trading’, as bitcoin is viewed as a commodity.

Following the aforementioned transactions, MicroStrategy’s bitcoin holdings as of Dec.27, 2022, stand at 132,500 BTC worth $2.2 billion, up from a previous 130,000 in October. Notably, the sale of 704 bitcoins marks the first time that MicroStrategy is selling since its first purchase in August 2020.

However, the value of MicroStrategy’s BTC holdings plummeted following the bitcoin price slump, with bitcoin down more than 60% this year. The firm, in its SEC filing, noted that the 132,500 bitcoins were purchased for approximately $4.03 billion, at an average price per coin of $30,397.

Saylor still long bitcoin

Despite MicroStrategy’s current loss and bitcoin’s price plunge, co-founder and former CEO Michael Saylor, maintains his strong support for the largest crypto by market capitalization, while stating that the firm will not sell its BTC holdings.

In August 2022, Saylor stepped down from his role as MicroStrategy CEO and took on the role of executive chairman, thereby splitting the CEO and Chairman positions he held since 1989.