Shortly
- MicroStrategy, the largest corporate Bitcoin holder, has added about 2,500 BTC to its reserves since Nov. 1.
- That tally includes a sale of BTC on Dec. 22 for potential tax benefits — the first sale since Bitcoin began accumulating in 2020.
American software company MicroStrategy, the largest company owner of Bitcoin Reserves, announced Wednesday that it sold some of its holdings for the first time ever on Dec. 22.
But the move doesn’t mean a retreat from Bitcoin for the company and its notoriously optimistic co-founder Michael Saylor, as MicroStrategy has since bought even more BTC.
MicroStrategy sold 704 BTC to the company on December 22 for around $11.8 million wrote today in a file with the United States Securities and Exchange Commission (SEC) — a move that could benefit the company on tax liabilities, given how much value BTC has lost since MicroStrategy first began acquiring the cryptocurrency in 2020.
“MicroStrategy plans to carry back the capital losses resulting from this transaction against prior capital gains to the extent such carryback is available under current federal income tax laws, which may result in tax benefits,” the company wrote.
However, the company then flipped and bought 810 BTC on Dec. 24 for about $13.6 million. Paired with another 2,395 BTC that the company says it bought between Nov. 1 and Dec. 21 for a total of $42.8 million, MicroStrategy has now added about 2,500 BTC to its total tally since the beginning of last month.
This brings the company’s total bitcoin holdings to around 132,500 BTC, which is currently valued at just over $2.2 billion based on the current bitcoin price of around $16,735 per bitcoin CoinGecko.
MicroStrategy continues to rally the leading cryptocurrency, but its holdings are now significantly under water. The company said it has spent about $4.03 billion buying BTC so far, at a price per coin of $30,397 per piece.
Sailer, a notes Bitcoin maximalistco-founded MicroStrategy in 1989 and was its CEO until August of last year. He resigned and moved into the role of executive chairman, a move he said would allow him to focus even more on the company’s “bitcoin acquisition strategy.” Phong Le assumed the CEO role, complementing his existing role as President of MicroStrategy.
In late August, after Saylor’s role change, Attorney General Karl Racine in Washington, DC announced that he had done so civil action brought against MicroStrategy and Saylor for alleged tax fraud. Racine claimed that the company helped its founder “evade taxes that he legally owes on hundreds of millions of dollars” he earned while living in DC.
Both Saylor and MicroStrategy denied the allegations, a company spokesman said decrypt that the attorney general’s allegations “are false and we will defend ourselves aggressively against this exaggeration.”
The company announced this in September aims to sell up to $500 million Value of Class A shares to fund further bitcoin purchases. According to today’s SEC filing, MicroStrategy has sold approximately $46.4 million of stock to date in this transaction.
MicroStrategy owns significantly more Bitcoin than any other publicly traded company, according to data CoinGecko. The second largest holder, Bitcoin mining company Marathon Digital, holds just over 10,000 BTC, while crypto exchange Coinbase is third with 9,000 BTC on its balance sheet.
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