MicroStrategy Generates Net Tax Benefit, Increases Bitcoin Holdings Despite Loss

• In December 2022, software analytics company MicroStrategy sold 704 bitcoin to generate a net tax benefit and offset previous capital gains.
• Two days later, MicroStrategy bought back 810 bitcoin, at a higher price than the sale.
• MicroStrategy now holds 132,500 BTC, acquired for about $4.03 billion at an average price of $30,397 per bitcoin, resulting in an unrealized loss of over $1.8 billion.

Software analytics company MicroStrategy recently made a move to generate a net tax benefit, resulting in the sale of 704 bitcoin on December 22, 2022. Before this sale, the firm had bought 2,395 bitcoin between November 1 and December 21, 2022, for a total of $42.8 million. This purchase brought their total holdings of bitcoin to 132,500, acquired for about $4.03 billion at an average price of $30,397 per bitcoin.

Two days later, MicroStrategy bought back 810 bitcoin, at a higher price than the original sale. This new purchase was done in order to offset any losses from the initial sale, and it ultimately resulted in an increase of their bitcoin holdings by 2,500 BTC.

However, this purchase has resulted in an unrealized loss of over $1.8 billion. The Virginia-based firm is led by Michael Saylor, and the move is part of their strategy to add digital currency to their treasury. The move to generate a net tax benefit was successful, and they were able to offset any previous capital gains.

Overall, MicroStrategy’s recent move has proven successful in generating a net tax benefit, while also increasing their bitcoin holdings. Although they have suffered an unrealized loss of over $1.8 billion, they remain committed to their strategy and will continue to work to add digital currency to their treasury.