MicroStrategy Founder and Executive Chairman Michael Saylor explains why the software company sold Bitcoin (Bitcoin) even though before state The company said it would not sell its cryptocurrency holdings.
In a Twitter Spaces discussion, Saylor To tell As a company, MicroStrategy is in a position to enjoy tax benefits by selling a portion of its bitcoin.
“Bitcoin is now traded as an asset, so you have the option to sell the asset and take the capital loss and buy the asset in the future or have you bought it in the past, and that’s another tax base. .
Since there are capital gains to pay taxes on and capital losses can occur on bitcoin, you can offset the capital gains by selling bitcoin and taking capital losses. has a tax saving effect. “
In a US Securities and Exchange Commission (SEC) filing filed on December 28, MicroStrategy report It sold $11.8 million worth of Bitcoin at an average price of about $16,776 per BTC on Dec. 22. The company said the sale of about 704 BTC was for tax purposes.
MicroStrategy plans to carry back capital losses resulting from this transaction against prior capital gains to the extent that such carrybacks are available under federal income tax law currently in effect, and this It can generate tax benefits.
The world’s largest corporate holder of bitcoin remains bullish on the benchmark cryptocurrency. Two days after the sale, SEC filings show MicroStrategy bought more bitcoin than it sold.
On December 24, 2022, MicroStrategy acquired approximately 810 Bitcoins for approximately $13.6 million in cash. Including fees and expenses, the average price per Bitcoin is approximately $16,845.
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