Here is why Microstrategy sold 704 bitcoins on December 22nd
Here is why Microstrategy sold 704 bitcoins on December 22nd
The listed business intelligence company Microstrategy announced that it sold part of its Bitcoin stock for tax reasons on December 22nd.
Although the company later bought additional bitcoins, the sale opposed his promise not to sell parts of his BTC stock.
Microstrategy sold BTC for tax advantages
As already reported, Microstrategy bought 2,395 bitcoins worth around $ 42.8 million between November 1, 2022 and December 21, 2022. The company then sold 704 BTC on December 22nd for around $ 11.8 million before buying another 810 BTC two days later.
The submission of the company at the Securities and Exchange Commission (SEC) shows that the bitcoins were sold to achieve tax advantages.
"Microstrategy plans to return the capital losses resulting from this transaction against previous capital profits, insofar as such relegations are available according to the currently applicable federal income tax laws, which can lead to tax benefits." said the company .
a broken promise
In the summer of 2020 Microstrategy began his culture of accumulation of Bitcoin by his former CEO Michael Saylor. Since then, the company has accumulated 132,251 BTC worth $ 2.2 billion at current market prices. This makes Microstrategy the largest owner of BTC among the listed companies, although it sits on a massive loss of almost $ 2 billion.
After the bull run 2021, the price for Bitcoin and other crypto-assets collapsed. The downward trend became more pronounced in 2022, but the Baisse did not dampen the BTC merchant mood of Microstrategy.
in A January interview to Bloomberg vibrations that his company would not sell his Bitcoin stocks.
"never. No. We are not a seller. [..] We only acquire and keep Bitcoin, right? That is our strategy," he said.
In the same month, Phong Le, at that time Chief Financial Officer from Microstrategy, explains that the company would hold on to a "Buy and Hold" policy.
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