- MicroStrategy increased its Bitcoin (BTC) holdings by 2,500 between November and December
- The American firm also made its first Bitcoin sale for an average of $16,776 for each BTC
Michael Saylor’s MicroStrategy continues to be bullish on Bitcoin‘s (BTC) future despite the current market downturn. The American firm purchased nearly 2,395 BTCs from the start of November to December 21, 2022. According to the firm’s SEC filing, the purchase cost the firm $42.8 million, with each Bitcoin costing an average of $17,871. Notably, MicroStrategy made the BTC purchase in cash.
Read Price Prediction for Bitcoin [BTC] 2023-24
While the company did add more coins, it has also sold some for the first time. The filing stated that MicroStrategy sold approximately 704 BTCs on December 22, 2022. This sale added $11.8 million to the firm’s balance sheet, with each BTC selling for an average amount of $16,776. This move, however, was influenced by the potential tax benefit the firm would gain. The filing read,
“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.”
MicroStrategy continues to focus on BTC’s future value
Following this, the American firm purchased 810 Bitcoins on December 24, 2022, for $13.6 million in cash. The firm paid approximately $16,845 for each BTC in this purchase round.
The new round of purchases leaves MicroStrategy with nearly 132,500 BTCs as of December 27, 2022. The total amount of BTCs was bought for nearly $4.03 billion, with each BTC costing nearly $30,397. The filing also read,
“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.”
Notably, the firm made the huge purchase right when Bitcoin remains in the bear’s clutches. According to TradingView, in December 2022, the king coin was trading between a high of $18,385 and a low of $16,273. Meanwhile, the coin dipped to its lowest level for this year in November 2022, with Bitcoin trading at $15,460.
At press time, the king coin was trading at $16,706.31 with a market cap of $321 billion, as per CoinMarketCap. The coin seemed to be moving sideways as no significant price change was noted.