MicroStrategy Sells Portion of Bitcoin Holdings for the First Time

MicroStrategy Sells Portion of Bitcoin Holdings for the First Time

Bitcoin

Business intelligence firm MicroStrategy recently announced that it had acquired about 2,395 bitcoins for a purchase price of approximately $42.8 million between Nov. 1 and Dec. 21, according to a recent regulatory filing.

This brings their grand total to approximately 132,500 coins held at a combined purchase price of nearly $4 billion and an average cost per coin of around $30,000.

Notably, the company also sold 704 bitcoins for approximately $11.8 million at a loss on Dec. 22 in order to get a tax benefit. This marks the company’s first sale of Bitcoin. This came after former CEO Micahel Saylor said that MicroStrategy would never sell its stash earlier this year.

MicroStrategy first began investing in Bitcoin in August 2020. At the time, MicroStrategy stated that it views Bitcoin as a reliable store of value that is better suited to preserving wealth over time compared to cash and other cash alternatives. Additionally, they felt that the cryptocurrency’s ongoing development could provide higher returns compared to more traditional investments such as government bonds and stocks.

Whle initially being seen as a success, MicroStrategy endured a tremendous setback with its big Bitcoin bet in 2021. The company is now sitting on Bitcoin-related paper losses that suprass $1 billion.

As reported by U.Today, Saylor stepped down as the company’s CEO back in August. However, he keeps remains a strong Bitcoin advocate despite the fact that his gamble has backfired.

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