MicroStrategy Added 2500 BTC In Last Couple Of Months• December 28, 2022 1:54 pm • Comments
Despite the extended crypto winter and the recent events that have had a negative impact on the industry in the short term, it seems that MicroStrategy is still bullish on Bitcoin.
Michael Saylor has revealed that the company has continued to acquire Bitcoin at these lower prices and have so far bought almost 2500 BTC in the last two months.
This was verified with the latest filing that they had with the SEC and proves that the company is actually doing what it claims.
The company has had a lot of criticism from the mainstream public for being so adamant about its position on Bitcoin and only time will tell on whether or not this big bet will pay off in the end.
Based on the data, the company holds a total of 132,000 BTC which is worth around $2.25 billion today which makes it quite the sizeable whale.
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
Last Thursday, the company sold about 704 bitcoins for $11.8 million on the premise that a loss on the transaction would offset previous capital gains.
Then on Saturday, the company acquired an additional 810 bitcoins for $13.6 million, bringing its total holdings up to 132,500 bitcoins. That’s worth about $2.25 billion at current prices, compared with MicroStrategy’s acquisition cost of $4 billion.
The sale last week marks the first time MicroStrategy has sold bitcoin since it began acquiring the cryptocurrency in 2020.
In sum, since Nov. 1, the company added about 2,501 bitcoins to its holdings, spending a net $44.6 million.
Shares of MicroStrategy were up marginally in premarket trading, while the price of bitcoin remained little changed at about $16,700.
MicroStrategy’s stock is one of the few publicly traded stocks that heavily correlates with the price of BTC because of the company’s heavy position in the digital asset.
The recent selling or trimming of its Bitcoin reserves is believed by speculators as a way to reduce the amount of taxes that the company has to pay.
After all, the year is coming to an end and many crypto firms will engage in a practice called “tax harvesting” which is made up of various tax reduction methodologies.
As Saylor is pretty much known as Bitcoin maximalist at this point, investors of MicroStrategy expect the company to continue to acquire if the crypto bear market extends into 2023 next year.
With that being said, Saylor is no longer the CEO of the company and has stepped down in order to focus solely on the company’s crypto strategy.
MicroStrategy now owns 1 out of every 159 #bitcoin that will ever exist 🤯 pic.twitter.com/q41Ojoln1n
— Bitcoin Magazine (@BitcoinMagazine) December 28, 2022
Saylor, a noted Bitcoin maximalist, co-founded MicroStrategy in 1989 and served as its CEO until this past August.
He stepped down and transitioned to the role of executive chairman, a move that he said would allow him to focus even more on the firm’s “Bitcoin acquisition strategy.” Phong Le took over the CEO role, adding to his existing role as MicroStrategy president.
In late August, following Saylor’s role shift, Washington, D.C., Attorney General Karl Racine announced that he had filed civil charges against MicroStrategy and Saylor over alleged tax fraud. Racine claimed that the company helped its founder “evade taxes he legally owes on hundreds of millions of dollars” earned while living in DC.
Both Saylor and MicroStrategy disputed the charges, with a company spokesperson telling Decrypt that the attorney general’s accusations “are false, and we will defend aggressively against this overreach.”
BREAKING: MicroStrategy sold 704 #Bitcoin for a total of around $11.8 million, offloading at $16,776 per coin.
— whalechart.org 🐳 (@WhaleChart) December 28, 2022
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