MicroStrategy sells Bitcoin for the first time, remains a net buyer

MICROSTRATEGY, the enterprise-software firm better known in recent years as the largest corporate buyer of Bitcoin, announced a series of transactions involving the cryptocurrency including its first ever sale of the token. The company remains a net buyer.

In a filing on Wednesday (Dec 28), MicroStrategy said it acquired approximately 2,395 Bitcoin for roughly US$42.8 million in cash between the start of November and Dec 21 through its MacroStrategy subsidiary. The company said it paid an average price of US$17,871 per token for that cache. It then sold 704 Bitcoin on Dec 22 for a total of around US$11.8 million, offloading at US$16,776 per coin. The company cited tax reasons.

“MicroStrategy plans to carry back the capital losses resulting from this transaction against previous capital gains, to the extent such carrybacks are available under the federal income tax laws currently in effect, which may generate a tax benefit,” the document said.

MicroStrategy then proceeded to buy another 810 Bitcoin on Dec 24, handing over US$13.6 million in cash and paying an average price of approximately US$16,845 per coin.

All in, MicroStrategy held about 132,500 Bitcoin worth more than US$4 billion as of Dec 27. The firm paid an average purchase price of US$30,397 per Bitcoin. Bitcoin on Wednesday traded at around US$16,650, having lost more than 60 per cent for the year, a decline that puts it on pace for one of its worst annual stretches on record.

MicroStrategy had over the pandemic years become well known for its Bitcoin acquisitions, led largely by its charismatic chief executive officer Michael Saylor. Saylor earlier this year relinquished that role and now serves as executive chairman at the firm and still leading its Bitcoin strategy.

The company’s shares fell 0.3 per cent to US$148.20 in early trading in New York, and are down more than 70 per cent year to date. BLOOMBERG