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MicroStrategy increased its total bitcoin holdings to 132,500 BTC after making two major purchases this month, the company’s 8-K filing with the SEC showed. The company bought 2,395 BTC between Nov.1 and Dec. 21 for $42.8 million and another 810 BTC on Dec. 24 for $13.6 million.
MicroStrategy Bought 3,205 BTC Since Nov. 1
Microstrategy bought 2,395 BTC between November 1, 2022, and December 21, 2022, through its wholly-owned subsidiary, the firm’s 8-K filing with the SEC showed. The transaction’s worth was around $42.8 million in cash at an average price of $17,871 per bitcoin, including fees and expenses.
The business intelligence firm then sold around 704 bitcoins for $11.8 million in cash, at an average price of $16,776 per bitcoin, excluding fees and expenses, the filing revealed. The company said it intends 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 Dec. 22 sale marks the first time Michael Saylor’s firm sold the Bitcoin since it first purchased it in 2020. Two days later, MicroStrategy purchased a further 810 bitcoins for roughly $13.6 million in cash at an average price of $16,845 per coin, including fees.
After taking into account all of the aforementioned transactions, MicroStrategy and its subsidiaries increased their bitcoin holdings by 2,500 BTC to a total of 132,500 BTC as of Dec. 27. The filing showed that the firm acquired the total amount at an aggregate buy price of around $4.03 billion and an average purchase price of $30,397 per bitcoin, including fees.
MicroStrategy’s Shares Remain Down More than 73% in 2022
Shares of MicroStrategy are slightly up in premarket trading Wednesday on the news. The move comes after the company’s shares headed for a 4-month low in November after Bitcoin’s price plummeted below $16,000 in the wake of the FTX collapse.
MicroStrategy, one of the biggest bitcoin bulls, has taken a heavy blow amid a broader crypto market downturn this year. The company’s shares are down more than 73% since the start of the year, compared to bitcoin’s decline of 65% during the same period.
It marks a sharp U-turn from 2021 when bitcoin hit an all-time high of more than $69,000. MicroStrategy capitalized on that rally, with its stock price skyrocketing from $130 per share in 2020 to $1,272 in early 2021.