• Michael Saylor, the founder and former CEO of software firm MicroStrategy, recently invested $42.8 million in bitcoin (BTC).
• The investment was made through a purchase of 2,395 bitcoins at an average price of $17,871 per bitcoin, inclusive of fees and expenses.
• MicroStrategy also sold 704 bitcoins for cash proceeds of $11.8 million, at an average price of $16,776 per bitcoin, net of fees and expenses.
Michael Saylor, the founder and former CEO of software firm MicroStrategy, continues to demonstrate a bullish approach to bitcoin (BTC) with his latest investment of about $42.8 million in the top crypto. This investment follows previous large purchases of the digital asset, made public in August and December of last year.
In a recent filing with the Securities and Exchange Commission (SEC), the business disclosed a purchase of about 2,395 bitcoins made with cash, at an average price of some $17,871 per bitcoin, inclusive of fees and expenses. This purchase was made to add to MicroStrategy’s already substantial bitcoin holdings, which now stand at around 132,500 bitcoins.
The firm has also sold some of its crypto assets over the past week with the aim to optimize its taxes, as indicated by the filing. On December 22, 2022, MacroStrategy sold approximately 704 bitcoins for cash proceeds of approximately $11.8 million, at an average price of approximately $16,776 per bitcoin, net of fees and expenses. The firm plans to carry back the capital losses resulting from the sale against previous capital gains, to the extent allowed under the current federal income tax laws.
On December 24, 2022, MicroStrategy acquired approximately 810 bitcoins for approximately $13.6 million in cash, at an average price of approximately $16,845 per bitcoin, inclusive of fees and expenses. This purchase was made to increase the firm’s bitcoin holdings and bring the total amount of bitcoin purchased by MicroStrategy this month to 2,500 bitcoins.
The firm has been outspoken about its belief in the potential of bitcoin, with Saylor himself delivering a keynote speech at the Bitcoin 2022 conference in Miami in December. In the speech, he highlighted the potential of bitcoin to become the primary store of value in the world, as well as its ability to act as a hedge against inflation.
MicroStrategy’s investment in Bitcoin is part of a wider trend of institutional investors entering the market, with many large companies announcing similar purchases in recent months. These include Square, which purchased $50 million worth of bitcoin in October, and MassMutual, which purchased $100 million worth of the digital asset in December.
It remains to be seen whether MicroStrategy’s bullish approach will pay off, but the firm’s continued commitment to the asset suggests that they are confident in its long-term prospects.