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MicroStrategy Buys the Dip: Increases Bitcoin Holdings to 132,500 BTC

Validated Media

According to a filing with the United States Securities and Exchange Commission (SEC), the company purchased 2,395 bitcoins between November 1, 2022, and December 21, 2022, through its subsidiary MacroStrategy at an approximate value of $42.8 million.

MicroStrategy further topped up its Bitcoin stash on December 24 with 810 BTC worth around $13.6 million at an average price of $17,871 per bitcoin, including fees and other expenses.

MicroStrategy Spends $4.3 Billion on Bitcoin Purchase

The latest purchase brings its overall crypto portfolio to 132,500 BTC, making MicroStrategy the highest bitcoin holder among publicly-traded corporate entities.

The business intelligence firm has been actively accumulating BTC since it joined the industry in August 2020. It has now invested $4.3 billion in its Bitcoin acquisition at an average price of $30,397 per BTC.

The latest purchase comes when Bitcoin’s value has reached new lows, with the price of the cryptocurrency trading below $17,000 for the first time after the 2021 boom market.

MicroStrategy’s last BTC acquisition was in September when the firm bought 301 bitcoins worth around $6 million after selling its stock. The crypto asset was trading at around $18,958 at the time and has dropped in value since then due to the recent market events and intensifying crypto winter.

Diamond Hand, Never Selling?

Despite the company’s disclosure in May that it would never sell its BTC stash, the business intelligence firm has sold a portion of its holdings for the first time since 2020.

The recent SEC filing also revealed that MicroStrategy sold approximately 704 bitcoins on December 22, 2022, before the December 24 purchase. The assets were sold for $11.8 million.

MicroStrategy said it 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.”

(By William A. Frederick)

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