Bitcoin Firebrand Michael Saylor Reveals Why MicroStrategy Sold Over $11,000,000 in BTC by the End of 2022

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MicroStrategy Founder and Executive Chairman Michael Saylor explains why the software company sold Bitcoin (BTC) when it previously said the company would not sell its crypto holdings.

In a discussion on Twitter Spaces, Saylor said that as a company, MicroStrategy is able to gain tax advantages by selling some of the company’s Bitcoins.

Bitcoin is currently traded as property, which means you can sell the property, take the capital loss and you have the option of buying property in the future or having bought it in the past and c is a different tax base.

We have capital gains that we pay taxes on, then we can have capital losses on bitcoin, so by selling the bitcoin and taking the capital loss, we can use it to offset some capital gains. So it’s very tax-efficient for the company.

In a U.S. Securities and Exchange Commission (SEC) filing submitted on December 28, MicroStrategy reported selling $11.8 million worth of Bitcoin at an average price of approximately $16,776 per BTC on December 22. . The company claims that the sale of approximately 704 BTC is for tax purposes.

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 world’s largest Bitcoin-holding company remains bullish on the benchmark cryptocurrency. The SEC filing shows that two days after the sale, MicroStrategy bought more Bitcoin than it sold.

On December 24, 2022, MicroStrategy acquired approximately 810 Bitcoins for approximately $13.6 million in cash, at an average price of approximately $16,845 per Bitcoin, including fees and expenses.

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