• Michael Saylor, the founder and former CEO of software firm MicroStrategy, recently purchased 2,395 bitcoins for about $42.8 million.
• The purchase was made with cash at an average price of some $17,871 per bitcoin, inclusive of fees and expenses.
• Following the transactions, the business expanded its bitcoin holdings from about 130,000 bitcoins to about 132,500 bitcoins.
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. 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.
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. MicroStrategy plans to carry back the capital losses resulting from this transaction against previous capital gains, to the extent such carrybacks are available under the federal income tax laws currently in effect, which may generate a tax benefit.
On December 24, 2022, MacroStrategy 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. Following the above-mentioned transactions, the business, together with its offshoots, expanded its bitcoin holdings by 2,500 bitcoins, from about 130,000 bitcoins as of October 31, 2022, to about 132,500 bitcoins as of December 27, 2022.
Michael Saylor, who has been an avid supporter of bitcoin and its underlying technology, has been vocal about his investment in the cryptocurrency. He has previously stated the crypto can provide a hedge against inflation, and that it is a “legitimate store of value” and a “verifiable form of wealth storage”.
Saylor’s bullishness is in line with the growing institutional adoption of bitcoin. The cryptocurrency has seen an influx of institutional investors over the past year, with the likes of Square, PayPal, and MicroStrategy all investing in the digital asset. These investments have helped to push the price of bitcoin to new highs, with the crypto reaching a new all-time high of over $40,000 earlier this month.
It remains to be seen if Saylor’s latest investment will pay off, but it is clear that he is confident in the long-term prospects of bitcoin.