• MicroStrategy bought 2,395 BTC for $42.8 million and then sold 704 BTC at a loss on Dec. 22 to offset previous capital gains.
• Two days later, MicroStrategy bought back 810 BTC at a higher price.
• As a result of these transactions, MicroStrategy now holds 132,500 BTC with an unrealized loss of over $1.8 billion.
Software analytics company MicroStrategy has sold bitcoin for the first time since it first began adding the digital currency to its treasury in 2020. This sale took place on December 22, 2022 and was carried out in order to generate a net tax benefit, as the losses involved in the sale are able to offset previous capital gains.
Prior to the sale, MicroStrategy had purchased 2,395 BTC for $42.8 million between November 1 and December 21, 2022. This purchase was done at an average price of $17,871 per bitcoin, inclusive of fees and expenses. On December 22, MicroStrategy sold 704 of those bitcoin in order to offset previous capital gains.
Two days later, MicroStrategy bought back 810 BTC for a higher price, which was $16,845 per BTC. After the sale and purchase, MicroStrategy’s bitcoin holdings increased by 2,500 BTC and now stands at 132,500 BTC, purchased for about $4.03 billion at an average price of $30,397 per bitcoin. This purchase has resulted in an unrealized loss of over $1.8 billion for the company.
The sale and purchase of bitcoin was headed by CEO Michael Saylor, who has been the driving force behind MicroStrategy’s foray into the cryptocurrency market. With this purchase and sale, MicroStrategy has become one of the largest institutional holders of bitcoin, and has helped to demonstrate the value and legitimacy of the digital currency market.