Despite selling bitcoin for the first time to earn a tax benefit, Michael Saylor’s software firm grew its bitcoin holdings by 2,500 BTC.
- Between November 1 and December 21, 2022, Michael Saylor’s MicroStrategy paid $42.8 million in cash for 2,395 BTC.
- On December 22, it sold 704 BTC at a loss to offset prior capital gains.
- On December 24, MicroStrategy purchased 810 BTC.
MicroStrategy, a software analytics business, has sold bitcoin for the first time after introducing the digital currency to its treasury in 2020.
According to a filing with the US Securities and Exchange Commission, the sale took place on December 22, 2022. (SEC). According to the filing, the action was made to provide a net tax benefit since the losses from the sale might offset earlier capital gains. MicroStrategy acquired back more bitcoin than it sold two days later, but at a higher price: $16,845 per BTC on the 810 bitcoin buy vs. $16,776 on the 704 bitcoin sale.
The transaction was preceded by a larger acquisition. MicroStrategy purchased 2,395 bitcoin between November 1 and December 21, 2022, before launching the tax-loss harvesting plan. The purchase cost around $42.8 million, which equates to an average price of $17,871 per bitcoin after fees and expenditures.
Finally, the trades increased MicroStrategy’s bitcoin holdings by 2,500 BTC. Michael Saylor’s business currently owns 132,500 BTC worth about $4.03 billion at an average price of $30,397 per bitcoin. As a result, the Virginia-based company is now facing an unrealized loss of more than $1.8 billion.
