On December 22, MicroStrategy, a publicly traded business intelligence company, sold part of its bitcoin stash, for what it described as tax purposes.
From November 1, 2022, to December 21, 2022, MicroStrategy purchased 2,395 bitcoins worth $42.8 million. On December 22, the company sold 704 BTC for about $11.8 million, then bought another 810 BTC two days later. According to the SEC filing, bitcoins were sold to generate tax benefits.
“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,” the company said.
MicroStrategy’s former CEO, Michael Saylor, began accumulating Bitcoin in the summer of 2020. In total, the company has accumulated 132,251 BTC, valued at $2.2 billion. Despite having an unrealized loss of almost $2 billion, MicroStrategy is the largest holder of Bitcoin among public companies.
In the wake of the bull run in 2021, the price of Bitcoin and other crypto assets plummeted. Even though the bear market in 2022 became more pronounced, MicroStrategy’s BTC buying spirit did not dim as a consequence of the downtrend. Will this strategy prove beneficial as the crypto ecosystem evolves? Time will tell.
