MicroStrategy Invests $42.8M in Bitcoin, Bolstering Its Total Holdings to $5.3B

• Michael Saylor, the founder and former CEO of software firm MicroStrategy, recently purchased approximately 2,395 bitcoins for approximately $42.8 million.
• The firm also sold some of its crypto assets over the past week for cash proceeds of approximately $11.8 million.
• Following these transactions, MicroStrategy’s bitcoin holdings have increased from about 130,000 bitcoins as of October 31, 2022, to about 132,500 bitcoins as of December 27, 2022.

Michael Saylor, the founder and former CEO of software firm MicroStrategy, continues to demonstrate a bullish approach to bitcoin (BTC) with his latest investment of about $42.8 million in the top crypto. In a recent filing with the Securities and Exchange Commission (SEC), the business disclosed a purchase of about 2,395 bitcoins made with cash, at an average price of some $17,871 per bitcoin, inclusive of fees and expenses.

The firm has also sold some of its crypto assets over the past week with the aim to optimize its taxes, as indicated by the filing. On December 22, 2022, MicroStrategy sold approximately 704 bitcoins for cash proceeds of approximately $11.8 million, at an average price of approximately $16,776 per bitcoin, net of fees and expenses. 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.

On December 24, 2022, MicroStrategy also acquired approximately 810 bitcoins for approximately $13.6 million in cash, at an average price of approximately $16,845 per bitcoin, inclusive of fees and expenses. Following these transactions, the firm’s bitcoin holdings have increased to about 132,500 bitcoins, from about 130,000 bitcoins as of October 31, 2022.

The filing also stated that the company’s bitcoin holdings are held as a long-term investment on the balance sheet and are intended to provide a hedge against inflation. MicroStrategy has been investing in bitcoin since August 2020, when it announced its first purchase of 21,454 bitcoins for $250 million. Since then, the firm has continued to invest in the leading cryptocurrency, with its total holdings now worth more than $5.3 billion.

The move is the latest in a series of high-profile investments in bitcoin by corporate entities, including Square, PayPal, and Tesla. Analysts believe that the increasing demand for bitcoin from institutional investors is driving up the price of the asset, and its adoption is likely to continue to accelerate in the coming years.