Cryptocurrency miners and investors would not want to see Year 2022 repeat. It obviously saw worse turns. Major exchanges filing for bankruptcy, Bitcoin price crashing and technical indicators not able to help, side grinding price trends, stable coins losing their peg, DeFi Rug pulls, and more. Even those who consider market crashes as the best time to buy are left wondering if they need to rethink their investment portfolio.
When all this was happening, Microstrategy sold their BTC and bought back more for the first time. Microstrategy have to say that they sold for tax benefits; however, after selling, they only bought more. The bitcoin price going down and the overall crypto winter did not discourage Microstrategy from selling and hoarding Bitcoin.
Michael Saylor: “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.”
Microstrategy is known to be the largest corporate Bitcoin holder. They added 2,500 BTC on November 01, 2022. This was followed by a sale of Bitcoin on December 22 for potential tax benefits, which is the first ever sale ever since Microstrategy started accumulating.
Michael Saylor, the founder of Microstrategy is known to propagate the idea of HODL Bitcoin all the time. Microstrategy has been accumulating BTC since 2020. When filing with the SEC Microstrategy sold about 704 BTC for about $11.8 million and this transaction helps the company in terms of tax liabilities, because of the value lost by BTC since 2020.
Microstrategy has stated, “MicroStrategy plans to carry back the capital losses resulting from this transaction against previous capital gains, to the extent such carry backs are available under the federal income tax laws currently in effect, which may generate a tax benefit,”
After selling 704 BTC and declaring losses and filing for tax benefits, Microstrategy again purchased 810 BTC for nearly $13.6 million on December 24, 2022. The company also reported to have purchased another 2,395 BTC between November 01, 2022 and December 21, 2022 – thus adding 2500 BTC their profile for a value of $42.8 million.
Microstrategy now holds 132,500 BTC and it is at present valued at $2.2 billion + or minus trending values.
Onlookers are wondering how Microstrategy continues to hold BTC and buy more when the holdings already seem to be under water.
Microstrategy are never bothered about the bumpy ride of BTC price.
A finance graduate, Maheen Hernandez has been drawn to cryptocurrencies ever since Bitcoin first emerged in 2009. Nearly a decade later, Maheen is actively working to spread awareness about cryptocurrencies as well as their impact on the traditional currencies. Appreciate the work? Send a tip to: 0x75395Ea9a42d2742E8d0C798068DeF3590C5Faa5
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