MicroStrategy increased Bitcoin holdings by 2,500 & also made its 1st sale for an average of $16,776
Despite the recent market slump, Michael Saylor’s MicroStrategy remains confident on Bitcoin’s future. Between the beginning of November and December 21, 2022, the American company bought almost 2,395 BTC. The purchase cost, which averaged $17,871 for each Bitcoin, was $42.8 million, according to the company’s SEC filing. Notably, MicroStrategy paid cash for the BTC purchase.
MicroStrategy increased its Bitcoin holdings by 2,500 between November and December
The corporation increased the number of coins, but it has also begun selling some. According to the documentation, MicroStrategy sold about 704 BTCs on December 22, 2022. As a result of this transaction, the firm’s balance sheet increased by $11.8 million, with each BTC selling for an average price of $16,776. However, the possible tax benefit the company would receive played a role in this decision.
“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 filing stated.
After then, on December 24, 2022, the American company bought 810 Bitcoins for $13.6 million in cash. The company paid roughly $16,845 for each BTC in this round of purchases.
As of December 27, 2022, MicroStrategy will have almost 132,500 BTC after the latest purchases. BTCs were purchased for around $4.03 billion, costing roughly $30,397.
“MicroStrategy, together with its subsidiaries, increased its bitcoin holdings by 2,500 bitcoins, from approximately 130,000 bitcoins as of October 31, 2022, to approximately 132,500 bitcoins as of December 27, 2022”, the filing added.
The company made the sizable acquisition while Bitcoin was still in the bear’s grip. TradingView reports that the king coin traded in December 2022 between a high of $18,385 and a low of $16,273. In the meantime, Bitcoin’s value fell to $15,460 in November 2022, marking the coin’s lowest point for the year.
BTC/USD 4-hour chart Source: TradingView
According to CoinMarketCap, the king coin had a $321 billion market cap at the time of publication and was selling for $16,606. There was no discernible price change, giving the impression that the coin was going sideways.
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