Recent Bitcoin Transactions
In a recent update to the United States Securities and Exchange Commission, MicroStrategy revealed that it made a significant addition to its Bitcoin stash. Between November 1 and December 21, the software analytics company acquired 2,395 BTC at an average price of $17,181, amounting to a hefty $42.8 million. However, the firm took a slight detour on December 22, selling 704 BTC at a lower price of $16,776 per coin, totaling $11.8 million.
December 24 Acquisition
Not one to sit back, MicroStrategy upped the ante again just two days later, purchasing approximately 810 BTC for $13.6 million, which broke down to an average price of $16,845 per coin. What a rollercoaster of Bitcoin buying and selling!
The Rationale Behind Selling
In a year where the market has been tumultuous, Michael Saylor, MicroStrategy’s CEO and a well-known blockchain advocate, reiterated the firm’s commitment to holding on to their Bitcoin treasures. Saylor stated in an earlier interview, “We’re only acquiring and holding Bitcoin, right? That’s our strategy. We’re not sellers.” However, the recent public sale did leave some heads scratching. In their filing, MicroStrategy explained the decision by noting:
“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.”
Current Bitcoin Holdings
As it stands now, MicroStrategy holds a whopping 132,500 BTC, which cost the firm around $4.03 billion with an average purchase price of $30,397. Yet, the market value of their fistful of coins has taken a hit, slipping to about $2.2 billion at the time of this article’s publication. One must wonder, is this a case of ‘what goes up must come down’?
MicroStrategy’s Stock Activities
MicroStrategy’s ambitions don’t stop at Bitcoin acquisitions. Previously disclosed in a September 9 filing, the company announced plans to issue or sell up to $500 million worth of common stock. Between October 1 and December 27, they sold 218,575 units, raking in $46.4 million. At this rate, they’re practically swimming in financial paperwork!
Legal Troubles for Saylor
But it’s not all smooth sailing for CEO Michael Saylor, who is currently facing a lawsuit from Washington, DC’s attorney general over allegations of tax evasion. Hopefully, Saylor has a solid legal team, as navigating the world of cryptocurrencies and legal battlegrounds simultaneously is no easy task!
Overall, MicroStrategy remains a key player in the Bitcoin arena, even as it maneuvers through a mix of bold investments and legal challenges. Will they continue to hold fast in the crypto storm or adapt their strategy? Only time will tell!
