American business intelligence company MicroStrategy had its first Bitcoin sale, revealed on December 22. You might think they are scared of the current bear market. Quite the opposite, MicroStrategy sticks with their commitment to Bitcoin and is still bullish on it. With the support of co-founder Michael Saylor, the company has purchased even more BTC after the sale. This new move shows that MicroStrategy is bold and determined to expand its cryptocurrency investment portfolio.
According to MicroStrategy’s SEC filing report, it had sold 704 Bitcoin for about $11.8 million. With the consideration of decreasing crypto prices compared to 2020, when they first started buying BTC. Taking a loss may bring them tax efficiency, meaning when a business pays the least amount of taxes required by law. This benefit may help them decrease some tax costs in order to hedge against the lower value in Bitcoin, in my opinion.
By utilizing federal income tax laws with capital losses from the Bitcoin sale and offsetting them against prior capital gains. What a great way to save money for the company. Not too long later, MicroStrategy bought 810 Bitcoins for about $13.6 million on December 24. Don’t forget that they also purchased 2,395 BTC from November 1 to December 21. Just last month alone, the company had a total investment of almost $43 million in Bitcoin.
Due to the new purchase, now the company has increased its Bitcoin holdings by about 2,500 Bitcoin. As a result, the MicroStrategy now has about 132,500 Bitcoin with a total value of $2.18 billion, according to BTC spot price at around $16,490 on MEXC Global at the time of writing.
Closing Thoughts
Although the crypto investments of the company are now in a deficit, it doesn’t seem like it will stop accumulating Bitcoin. Michael Saylor made the decision to leave his position and become executive chairman in order to devote himself fully to the organization’s cryptocurrency acquisition strategy, with Phong Le succeeding him as president and CEO. It was anticipated that this action would considerably enhance MicroStrategy’s Bitcoin investment strategies.
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