MicroStrategy adds 2,500 bitcoin to holdings despite tax-loss harvesting

The tech company led by Michael Saylor has increased its bitcoin holdings by 2,500 BTC despite selling bitcoin for the first time to generate a tax benefit.Author:NamciosPublish date:Dec 28, 2022The tech company led by Michael Saylor has increased its bitcoin holdings by 2,500 BTC despite selling bitcoin for the first time to generate a tax benefit.Michael Saylor’s MicroStrategy bought 2,395 BTC for $42.8 million in cash between Nov. 1 and Dec. 21, 2022.It then sold 704 BTC at a loss on Dec. 22 to offset previous capital gains. MicroStrategy purchased 810 BTC Dec. 24, according to a filing with U.S. Securities and Exchange Commission. According to the filing, the move was made to generate a net-tax benefit. The losses from the sale can be offset by capital gains. MicroStrategy purchased more bitcoins than it sold two days later, but at a higher price: $16,845 per BTC for the 810 bitcoin purchase, versus $16,776 for the 704 Bitcoin sale. A larger purchase preceded this sale. MicroStrategy purchased 2,395 bitcoin between November 1, 2022 and December 21, 2022 before it began the tax-loss harvesting strategy. The purchase cost $42.8 million. This is inclusive of all fees and expenses. Michael Saylor, the company’s leader, now has 132,500 BTC. They were acquired for $4.03 billion at an average bitcoin price of $30,397. As a result, the Virginia-based firm currently faces an unrealized loss of over $1.8 billion.Tagsterms:microstrategyBalance Sheetmichael saylor

 

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