By
Mayowa Adebajo
April 24th, 2024
A close look at the regulatory filing shared by the firm showed that it offloaded a total of 704 Bitcoin units worth approximately $11.8 million.
The most Bitcoin (BTC) bullish Wall Street company in the world, MicroStrategy Incorporated (NASDAQ: MSTR) has announced it has increased its Bitcoin holdings by exactly 2,395 units as of Tuesday, December 27.
According to the regulatory filing published by the firm, the acquisition of the digital currency spanned from November 1 this year through December 21. The purchases were made via the company’s wholly-owned subsidiary, MacroStrategy LLC and it is worth a monetary value of $42.8 million in cash, at an average price of approximately $17,871 per bitcoin, inclusive of fees and expenses.
With its latest acquisitions, the company’s founder and Executive Chairman Michael Saylor confirmed via Twitter that the firm now holds approximately 132,500 bitcoin acquired for about $4.03 billion at an average price of roughly $30,397 per BTC.
MicroStrategy has increased its #Bitcoin Holdings by ~2,500 #BTC. As of 12/27/22 @MicroStrategy holds ~132,500 bitcoin acquired for ~$4.03 billion at an average price of ~$30,397 per bitcoin. $MSTRhttps://t.co/lcMeULcGQk
— Michael Saylor⚡️ (@saylor) December 28, 2022
By reason of its latest acquisition, Michael Saylor’s MicroStrategy now comes off as a publicly traded entity that is most heavily invested in Bitcoin. Its acquisition spree started back in August 2020 and the firm has not relented in investing its excess liquidity into BTC despite scrutiny from analysts and observers as a whole.
With the prices of Bitcoin down by more than 66% in the year-to-date period according to data from Coingecko, many advocates now is the best time to accumulate the digital currency. Riding on the economic term of buy low and sell high, MicroStrategy exemplifies a firm that is known for buying the deep.
The news of the acquisition might be impacting the current price performance of Bitcoin whose price has pared off most of its losses and is now changing hands at $16,765.33, down 0.49% over the past 24 hours. Prior to the announcement, BTC was down by more than 2%.
MicroStrategy Inc’s Subtle Bitcoin Selloff
A close look at the regulatory filing shared by the firm showed that it offloaded a total of 704 Bitcoin units worth approximately $11.8 million. As revealed by Microstrategy, the Bitcoin selloff was necessary in order to garner tax benefits that have an underlying benefit.
“On December 22, 2022, MacroStrategy sold approximately 704 bitcoins for cash proceeds of approximately $11.8 million, at an average price of approximately $16,776 per bitcoin, net of fees and expenses. 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 announcement reads.
The selloff news and its presentation may not derail the optimism in the hearts of many Bitcoin investors and proponents who believe the coin can end the year with a relatively marginal profit. The company has renewed its commitment to continually stack up the coins with no immediate plans to offload its bag.