MicroStrategy has once again increased its Bitcoin holdings with the recent purchase of 2,500 new BTC. At the same time, the company made a small disposal for tax optimization reasons
MicroStrategy increases Bitcoin (BTC) reserve again
Yesterday, Michael Saylor, the founder of MicroStrategy, announced that his company had once again begun accumulating Bitcoin by revealing the acquisition of 2,500 new 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
This is a notable announcement, as the company had not redeemed any bitcoins since the period from August 2 to September 19, during which it had accumulated 301 bitcoins. The company is sending a strong signal to the market, as the asset is trading around $16,550 per unit at the time of writing, 76% below its last historical high (ATH).
To date, MicroStrategy has therefore built up a reserve of about 132,500 BTC, which is 0.69% of the amount that has already been issued.
First sale of BTC for tax optimization
This new investment statement also comes with MicroStrategy’s first ever sale. Indeed, the company sold exactly 704 bitcoins on December 22 for $11.8 million. The purpose of this transaction was to record a deficit in relation to the purchase price, in order to achieve tax optimisation.
At the same time, the company bought back 810 BTC on 24 December, and another 2,395 on 28 December, resulting in a positive balance of 2,501 bitcoins. Despite the sale, Michael Saylor’s claim that he did not want to sell anything is not in question.
In total, this Bitcoin reserve cost MicroStrategy $4.03 billion, or an average unit price of $30,397. This means that the company is making an unrealised loss of just over 46%. Nevertheless, after a slowdown in investment in recent months, this renewed interest in the current market price may be seen as reassuring for the long term.
