- MicroStrategy Michael Saylor bought 2,395 BTC for $42.8 million in cash between November 1 and December 21, 2022.
- Then sold 704 BTC at a loss on December 22nd to offset previous capital gains.
- MicroStrategy then bought 810 BTC on December 24th.
Software analytics company MicroStrategy has sold bitcoin for the first time since it began adding the digital currency to its treasury in 2020.
The sale took place on December 22, 2022, according to a filing with the US Securities and Exchange Commission (SEC). This move is carried out to generate net tax benefits, as the losses involved in the sale can offset the previous capital gains, per filing. Two days later, MicroStrategy bought back more bitcoins than it sold, but at a higher price — $16,845 per BTC on the purchase of 810 bitcoins vs. $16,776 in the sale of 704 bitcoins.
Buy the bigger ones before they go on sale. MicroStrategy bought 2,395 bitcoins between November 1 and December 21, 2022, before starting its tax loss harvesting strategy. The purchase cost about $42.8 million, translating to an average price of $17,871 per bitcoin, including fees and charges.
Ultimately, the transaction resulted in an increase in MicroStrategy’s bitcoin holdings by 2,500 BTC. The company led by Michael Saylor currently holds 132,500 BTC, earning approximately $4.03 billion at an average price of $30,397 per bitcoin. As a result, the Virginia-based company is currently experiencing unrealized losses of more than $1.8 billion.