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MicroStrategy adds to Bitcoin stake despite steep loss

In a new filing with the United States Securities and Exchange Commission, software analytics firm MicroStrategy said that it acquired 2,395 Bitcoin (BTC) at an average price of $17,181 for a total of $42.8 million during the period Nov. 1 and Dec. 21. Subsequently, the company sold 704 BTC at $16,776 per coin for a total of $11.8 million on Dec. 22. On Dec. 24, MicroStrategy acquired approximately 810 BTC for $13.6 million in cash, at an average price of $16,845 per coin. 

In a Bloomberg interview published earlier this year, MicroStrategy CEO and blockchain personality Michael Saylor told reporters: “We’re only acquiring and holding Bitcoin, right? That’s our strategy. We’re not sellers.” The Dec. 28 filing represents the first publicly reported BTC sale by the firm in recent memory. In supporting the decision, MicroStrategy wrote: 

“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.”

After the aforementioned transactions, MicroStrategy now holds 132,500 BTC, with an average purchase price of $30,397 and a total book value of $4.03 billion. However, the market value had declined to $2.2 billion at the time of publication.

MicroStrategy previously disclosed on Sept. 9 that the company may issue or sell up to $500 million worth of common stock. Between Oct. 1 and Dec. 27, the company sold 218,575 units for total net proceeds of $46.4 million. Saylor is currently embroiled in a lawsuit brought by Washington, DC‘s attorney general on allegations of tax evasion.

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