Michael Saylor On Why MicroStrategy Sold Over $11,000,000 in BTC

It seems that eventually, MicroStrategy’s Michael Saylor revealed the reason for which the company sold BTC before the end of 2022. Check out the latest reports below.

MicroStrategy founder and executive chairman Michael Saylor has just explained why his firm sold some Bitcoin (BTC) despite previously stating that the firm would not sell its crypto holdings.

In a Twitter Spaces discussion, Saylor said that as a corporation, MicroStrategy is in a position to enjoy tax benefits by selling some of the firm’s Bitcoin.

“Bitcoin is traded as property right now, so that means that you can sell the property, take the capital loss and you have the option to buy property in the future or to have bought it in the past and that’s a different tax basis.”

He continued and said the following:

“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.”

In a U.S. Securities and Exchange Commission (SEC) filing submitted on December 28th, MicroStrategy reported that it sold $11.8 million worth of Bitcoin at an average price of approximately $16,776 per BTC on December 22nd. The company said the fact that the sale of about 704 BTC is for tax purposes.

“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.”

Regarding the price of Bitcoin today, at the moment of writing this article, BTC is trading in the green and the king coin is priced at $16,747. Stay tuned for more news.