According to a recent regulatory filing, business intelligence firm MicroStrategy recently reported that it had acquired roughly 2,395 Bitcoins for a transaction price of approximately $42.8 million between Nov. 1 and Dec. 21. This puts their total number of coins held at around 132,500, with a cumulative purchase price of nearly $4 billion and an average cost per coin of around $30,000.
Notably, the corporation also sold 704 bitcoins on December 22 at a loss of around $11.8 million to receive a tax benefit. This is the company’s first Bitcoin transaction and it comes after former CEO Michael Saylor stated earlier this year that MicroStrategy would never sell its stock.
In August 2020, MicroStrategy began investing in Bitcoin for the first time. MicroStrategy indicated at the time that it sees Bitcoin as a reliable store of value that is more suited to conserving wealth over time than cash and other financial alternatives.
Furthermore, they believed that the continued development of cryptocurrencies could generate larger returns than more traditional investments such as government bonds and stocks.
Also regarded as a triumph, MicroStrategy suffered a massive failure with its large Bitcoin bet in 2022. The firm is now sitting on $1 billion in Bitcoin-related paper losses. Saylor, as previously reported, stepped down as CEO of the firm in August. Even though his gamble backfired, he remains a staunch supporter of Bitcoin.
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