Michael Saylor, the founder of Microstrategy, recently released a statement saying that Bitcoin has emerged as an institutional-grade digital asset. According to the reports, Microstrategy again increased its crypto holding by 2500 BTC. As of 27th December 2022, this firm holds around 132,500 BTC. This is good news for the crypto industry as it shows how big firms still trust bitcoin’s future.
Microstrategy buys more BTC
Microstrategy, one of the biggest business intelligent firms listed on Nasdaq, announced on Wednesday that it had purchased more BTC to increase its company treasure. The founder and executive chairman of Microstrategy, Mr Saylor, tweeted their company has grown its BTC holding by 2500 BTC. As of last Tuesday, their firm has a hold of a total of 132,500 bitcoins acquired for an average price of 4.02 billion USD for 30,297 bitcoins.
Microstrategy clarified in its filing with the US SEC that all the 2500 BTC was acquired between Nov 1, 2022, and Dec 24, 2022, by its sub-brand Macro strategy.
To be more precise, their subsidiary firm brought approx 2,395 bitcoin at an average price of around 17,800 dollars per coin. On Dec 22, it sold 704 BTC of its holding at an average price of 16,766 USD per coin. On Dec 24, their subsidiary company Macrostarergy repurchased 810 more BTC at around 16,845 BTC per coin. At the time of writing, the world’s largest cryptocurrency, BTC, is trading at approximately 16,564.80 USD.
Relation of Microstrategy with bitcoin
In 2020, when the market saw a huge drop in the price of BTC for the first time in recent years, then it was the first time the business intelligence firm Microstrategy sold its bitcoin since it began buying it for its company treasury. When asked about the reason behind the selling of BTC, they cited tax reasons.
One of the SEC filings described that Microstrategy is planning to cut off the capital losses resulting from these transactions against previous capital gains to the extent that such carrybacks are also valuable under the Fed’s income tax rules and regulations currently in effect, which can allow them to enjoy some tax benefits.
Last week, Saylor, the founder of Microstrategy, stated the only positive thing this year about BTC is its emergence as an institutional-grade digital asset and clarified that there is only one crypto in the market, Bitcoin, which is a digital commodity.
What are your thoughts on the acquisition of BTC by Microstrategy? Do you think that Bitcoin has emerged as an institutional-grade digital asset? Let us know in the comments below. And if you found our content informative, do share it with your family and friends.
Also Read: Microstrategy plans to offer Bitcoin Lightning solutions in 2023.
