Microstrategy Buys More Bitcoin Despite Huge Loss.
MicroStrategy’s BTC Move
Earlier this December, American business intelligence corporation Microstrategy surprised many after selling 704 Bitcoin for around $11.8 million, despite their CEO being known to be a massive Bitcoin enthusiast who earlier this year said they would never sell their BTC holdings.
In January MicroStrategy CEO Michael Saylor said in a Bloomberg interview “Never. No. We’re not sellers. We’re only acquiring and holding bitcoin, right? That’s our strategy.”
A new December 28th filing with the United States Securities and Exchange Commission (SEC) shows that the company had sold this massive amount of Bitcoin due to the massive loss they suffered this year due to the crypto winter.
“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’s filing read.
Buying More Bitcoin
However, in a move that surprised even more people was that the company and their CEO announced that after selling their BTC on December 22nd, they turned around to purchase even more Bitcoin.
The company explains that they purchased 810 BTC, or around $13.6 million on December 24th, as well as an additional 2,395 BTC (~$42.8 million) purchased sometime between November 1 and December 21.
CEO Michael Saylor tweeted about their new BTC purchases, explaining that MicroStrategy now holds a total of 132,500 BTC with an acquisition cost of $4 billion.
However, at current prices, MicroStrategy’s Bitcoin holdings are currently valued at just over $2.2 billion.
MicroStrategy has increased its #Bitcoin Holdings by ~2,500 #BTC. As of 12/27/22 @MicroStrategy holds ~132,500 bitcoin acquired for ~$4.03 billion at an average price of ~$30,397 per bitcoin. $MSTRhttps://t.co/lcMeULcGQk
— Michael Saylor⚡️ (@saylor) December 28, 2022