MicroStrategy First Sells Bitcoin, Then Buys More


  • MicroStrategy, the largest corporate Bitcoin holder, has added approximately 2,500 BTC to its reserves since November 1st.
  • That figure includes a Dec. 22 selloff of BTC for potential tax breaks, the first selloff since it began hoarding bitcoin in 2020.

American software company MicroStrategy, the largest corporate owner Bitcoin: reserves, disclosed on Wednesday that it had sold some of its holdings for the first time on December 22.

But the move doesn’t mark a retreat from Bitcoin for the company and its famously bullish co-founder Michael Saylor, as MicroStrategy has since bought more BTC.

MicroStrategy sold 704 BTC for about $11.8 million on December 22. wrote in a folder today with the United States Securities and Exchange Commission (SEC); a move that could benefit the company in terms of tax liabilities, given how much BTC has lost value since MicroStrategy first began acquiring the cryptocurrency in 2020.

“MicroStrategy plans to carry back capital losses resulting from this transaction against prior capital gains to the extent such carrybacks are available under current federal income tax laws, which may result in tax benefits,” the company wrote.

However, the company later turned around and bought 810 BTC for about $13.6 million on December 24th. Combined with another 2,395 BTC that the company said it bought between Nov. 1 and Dec. 21 for a total of $42.8 million, MicroStrategy has now added about 2,500 BTC. to its total since the beginning of the previous month.

That means the company’s total Bitcoin holdings are approximately 132,500 BTC, which is currently valued at just over $2.2 billion, based on the current Bitcoin price of about $16,735 apiece. CoinGecko:.

MicroStrategy continues to amass the leading cryptocurrency, but its holdings are now significantly underwater. The company said it has spent about $4.03 billion to date buying BTC at a price of $30,397 per coin.

Saylor, A noted a Bitcoin maximalistCo-founded MicroStrategy in 1989 and was its CEO until last August. He went down and transitioned to the role of executive chairman, a move he says will allow him to focus more on the firm’s “Bitcoin acquisition strategy.” Fong Le assumed the role of CEO, adding to his existing role as president of MicroStrategy.

In late August, following Saylor’s role change, Washington Attorney General Carl Racine announced that he filed civil charges Against MicroStrategy and Saylor for alleged tax fraud. Racine claimed the company helped its founder “avoid taxes he legally owed on hundreds of millions of dollars” he earned while living in DC.

Both Saylor and MicroStrategy disputed the allegations, with a company spokesperson saying Decode that the Attorney General’s allegations “are false and we will aggressively defend ourselves against this super-problem.”

The company said in September that aims to sell up to 500 million dollars The value of the company’s A-class shares to fund future purchases of Bitcoin. MicroStrategy has sold about $46.4 million worth of stock so far as part of that effort, according to an SEC filing today.

MicroStrategy owns significantly more bitcoin than any other public company, according to data obtained CoinGecko:. The second largest holder, Bitcoin miner Marathon Digital, has just over 10,000 BTC, while crypto exchange Coinbase is third with 9,000 BTC on its balance sheet.

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