MicroStrategy cites the tax advantages of Bitcoin

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MicroStrategy cited tax advantages as the reason for its recent buying and selling of bitcoins.

The company that develops enterprise software but is also the biggest bitcoin buyer has sold bitcoin for the first time but remains a net buyer, Bloomberg reported Wednesday, Dec. 28, citing a MicroStrategy filing with the Securities and Exchange. Commission (SEC) .

MicroStrategy sold 704 bitcoins on Thursday, Dec. 22 after buying 2,395 bitcoins between early November and Dec. 21, according to the filing.

While the company paid an average of $17,871 for the group’s parts from November through December 21, it sold parts on December 22 for an average of $16,776 per part. He did so for tax reasons, according to the report.

MicroStrategy expects to carry forward capital losses resulting from this transaction against prior capital gains, to the extent such carryovers are available under current federal income tax laws, which may result in a tax benefit. , the company said in its filing with the SEC. .

Two days after the coin sale, MicroStrategy bought 810 bitcoins on Saturday (December 24) for an average price of $16,845 per coin, according to the filing.

As of Tuesday (December 27), the company held approximately 132,500 bitcoins that were worth more than $4 billion at the time, having paid an average price of $30,397 per bitcoin across its holdings, according to the filing.

In September, when filing with the SEC to sell stock to help it buy more bitcoin, MicroStrategy said its business strategy for the company is to acquire and hold bitcoin, as well as grow its business analytics software business.

The company added at the time that the bitcoin aspect had broadened its profile with some potential software customers, and that the software side of the business gave it enough cash to buy bitcoin.

MicroStrategy said in the Sept. 9 filing that bitcoin is attractive because it can serve as a store of value, backed by a robust, public open-source architecture, which is not tied to sovereign monetary policy and therefore can act as a hedge. against inflation in the long run.

At the same time, as PYMNTS reported on August 5, bitcoin can be dangerous to the health of corporate balance sheets. Chief Financial Officers (CFOs) choosing to venture into the cryptoverse are well advised to scale their positions in proportion to revenue and reserves.

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