Michael Saylor explains why Microstrategy sold 704 Bitcoin
Michael Saylor precisely explained why Microstrategy company sold Bitcoin in Dec 2022, despite its pledge to never sell Bitcoin holdings.
Michael Saylor is the founder & former CEO of publicly listed business intelligence company Microstrategy. Microstrategy started to add Bitcoin to its balance sheet in August 2020 and now this company holds approximately 132,500 bitcoins under the leadership of Saylor. Now, Saylor is the Executive chairman and president of MicroStrategy. Saylor stepped down from the position of CEO because he was putting all of his efforts in favor of bitcoin-related initiatives, to generate some extra revenue for the company with Bitcoin holdings.
Recently during a Twitter space discussion, Saylor said that Microstrategy sold 704 BTC as a part of a strategy to offset the tax.
“We have some capital gains that we pay taxes on and then we can have some capital losses in Bitcoin, so by selling the Bitcoin and taking the capital loss, we’re able to use that to offset some capital gains. So it’s very tax efficient for the corporation.”
Saylor also noted that the company aimed to bring Bitcoin lightning enabled solutions, to expand the reach of the Bitcoin network in the world.
Earlier this, on 28 Dec a filing was submitted by Microstrategy which revealed that the company sold 704 Bitcoins on 22 Dec at $16,776 per BTC price. Later company again purchased 810 Bitcoins for $16,845 on 24 Dec. These things are a clear indication that the company’s Bitcoin sell strategy was a part of the tax offset plan.
At the time of writing this article, the price of Bitcoin is $16,731 and this price is 0.08% high over the last 24 hours’ trade price.