The software company continued to grow their Bitcoin holdings even though they also sold a modest amount of the cryptocurrency for the first time to obtain tax benefits.
MicroStrategy (MSTR), the business software provider co-founded by crypto enthusiast Michael Saylor, has increased the amount of bitcoins (BTC) in its inventory by buying about 2,395 bitcoins for $42.8 million between November 1 and December 21 through its MacroStrategy subsidiary, according to a filing with the Securities and Exchange Commission on Wednesday.
The firm sold around 704 bitcoins for $11.8 million last Thursday, reasoning that a loss on the deal would balance out earlier capital gains. The business then spent $13.6 million on Saturday to purchase an additional 810 bitcoins.
Michael Saylor and MicroStrategy have gradually increased their holdings of Bitcoin at various price points since their original purchase in August 2020, displaying their constant dedication to the top cryptocurrency.
The company now holds more than 132,500 bitcoins, making it the largest corporate Bitcoin holder. They started buying Bitcoin in August 2020 for its balance sheet. The firm’s investment has a net unrealized loss of roughly $1.8 billion at the present pricing after investing $4.05 billion to acquire their entire stash at an average cost of $30,566 per coin.
MicroStrategy hasn’t sold any bitcoin since it started buying it in 2020, but last week’s transaction was the company’s first-ever sale of the digital currency. In pre-market trading, MicroStrategy shares were slightly higher, while the price of bitcoin, which is currently about $16,700, was barely impacted.