• MicroStrategy sold 704 bitcoins on December 22 for tax purposes.
• The sale was the first time since the firm started accumulating the cryptocurrency in 2020.
• The company later purchased 810 more BTC two days after selling the initial 704.
Publicly-traded business intelligence company MicroStrategy made headlines recently when it revealed that it sold part of its bitcoin stash on December 22 for tax purposes. This was the first time the firm had sold any portion of its BTC stash since it started accumulating the crypto asset in 2020.
MicroStrategy had purchased 2,395 bitcoins worth about $42.8 million between November 1, 2022 and December 21, 2022. The company then sold 704 BTC for approximately $11.8 million on December 22 before purchasing another 810 BTC two days later. The firm’s filing with the Securities and Exchange Commission (SEC) stated that the sale was “for tax planning purposes.”
The filing also revealed that MicroStrategy had sold the bitcoins in order to “reduce the amount of any gain that might be recognized.” It was likely the company wanted to take advantage of the current prices of bitcoin and reduce the amount of tax that it would have to pay when it eventually sells its bitcoin holdings.
The sale of 704 BTC was a small portion of the company’s overall holdings, and it was quickly replenished with the purchase of more BTC. This indicates that the firm is still committed to its goal of increasing its bitcoin holdings.
The sale of some of its bitcoins for tax purposes is a reminder of the importance of doing proper tax planning when dealing with cryptocurrencies. It also highlights the fact that, despite the volatile nature of cryptocurrency markets, some companies are still willing to invest in bitcoin for the long-term.
MicroStrategy’s move is an example of how companies can use bitcoin as a part of their overall tax strategy. It also shows that companies are still interested in investing in the digital asset despite its volatility.
In the end, MicroStrategy’s sale of 704 bitcoins is yet another reminder of the importance of tax planning when dealing with cryptocurrencies. It is also a sign that companies are still willing to invest in the digital asset despite its volatile nature.