American software company MicroStrategy sold some of its holdings of Bitcoin for the first time, 704 BTC, for around $11.8 million

On the 28th of December, MicroStrategy, an American software company, disclosed that it sold some of its Bitcoin holdings for the first time on the 22nd of December. However, this sell-off did not impact the largest corporate holder of Bitcoin reserves, MicroStrategy. Moreover, this move also doesn’t signal a retreat from Bitcoin for the company and its co-founder Michael Saylor.

According to a filing with the SEC, the US Securities and Exchange Commission, Microstrategy wrote that it sold 704 BTC for around $11.8 million on the 22nd of December. Regarding the reason behind this sell-off, the company indicated that it might benefit them in terms of tax liabilities. 

In the filing, the software company wrote that 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 presently in effect. This may generate a tax benefit, the filing reads.

However, despite this latest sell-off, the software company purchased 810 BTC for around $13.6 million on the 24th of December. According to the company, it also purchased 2,395 BTC for a total of $42.8 million between the 1st of November and the 21st of December. Since the start of last month, Microstrategy has added around 2,500 BTC to its overall tally.

The latest Bitcoin holding of Microstrategy stands at around 132,500 BTC, worth more than $2.2 billion based on the current price of the largest cryptocurrency in the market, Bitcoin, around $16,735, according to data from CoinGecko. However, these Bitcoin holdings of the software company are now significantly underwater. According to the company, it spent more than $4.03 billion to date on purchasing BTC, at a per-coin price of $30,397. This data shows that the company is currently in loss due to the low price of Bitcoin, which was due to the beat crypto market and collapse of FTX, which was once the biggest crypto exchange in the world and now is nothing.

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