Michael Saylor On Why MicroStrategy Sold $11 Million Worth Of Bitcoin!
Michael Saylor On Why MicroStrategy Sold $11 Million Worth Of Bitcoin!
In late December, American business intelligence corporation Microstrategy turned heads when the company had hundreds of their BTC worth millions of dollars, something they had vowed they wouldn’t do for a long time now, since then MicroStrategy CEO has come out to explain the reasoning for their decision.
Michael Saylor On Selling BTC
In a Twitter Spaces discussion, MicroStrategy CEO Michael Saylor, explains that the company did not sell their BTC because of any form of bearishness towards the crypto, but rather, for tax purposes.
“Bitcoin is traded as property right now, so that means that you can sell the property, take the capital loss and you have the option to buy property in the future or to have bought it in the past and that’s a different tax basis,” Saylor explains.
Related: Microstrategy Buys More Bitcoin Despite Huge Loss
“We have some capital gains that we pay taxes on and then we can have some capital losses in Bitcoin, so by selling the Bitcoin and taking the capital loss, we’re able to use that to offset some capital gains. So it’s very tax efficient for the corporation.”
“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.”
During this conversation, @Eric_BIGfund & I discuss my role at @MicroStrategy, our Bitcoin Strategy, why #Lightning⚡️ applications are so exciting, the superiority of the layered #bitcoin architecture, $MSTR plans in 2023, and the power of @SpaceX Starlink. https://t.co/EjBUZEITIV
— Michael Saylor⚡️ (@saylor) December 28, 2022
MicroStrategy Buys More BTC
Since then, it was also announced that MicroStrategy on December 24th, far more than the amount of Bitcoin they sold earlier in the month.
“On December 24, 2022, MicroStrategy acquired approximately 810 Bitcoins for approximately $13.6 million in cash, at an average price of approximately $16,845 per Bitcoin, inclusive of fees and expenses.” Michael Saylor tweeted on December 28th.
Related: Why Rich Dad Poor Dad Author Robert Kiyosaki Says He’s Bullish On Bitcoin!
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