- MicroStrategy sold part of its Bitcoin collection for the first time on December 22.
- The selling was followed by a large purchase of $13.6 million worth of Bitcoins on December 24.
- Micheal Saylor, the co-founder, decided to fight against the allegation of tax fraud on Bitcoin.
MicroStrategy, a software company residing in America, sold a significant part of its Bitcoin reserve on December 22 for the first time. They held the most extensive collection of Bitcoin as a corporate company. Still, the sale of Bitcoin was not very fruitful for co-founder Michael Saylor because the company bought more Bitcoin after selling them.
On December 22, about 704 BTC were sold by MicroStrategy for $11.8 million. According to the Exchange Commission and United States Securities, this might be advantageous for the company since the value of Bitcoin lessened when the company started collecting Bitcoin sometime around 2020. The company planned to mend the losses that occurred from previous transactions from this.
But to everyone’s shock, MicroStrategy again bought 810 BTC for $13.6 million, which added to the previously purchased 2395 BTC for about $42.8 million. The current price of a unit of Bitcoin is $16,735, per CoinGecko, which now makes the collection of Bitcoin of MicroStrategy at 132,500 BTC for $2.2 billion.
But the company is at a loss because it has purchased Bitcoin for $4.03 billion to date, which is more than the amount it received from selling them. The co-founder of MicroStrategy, Michael Saylor, stepped down from the position of CEO and took on the role of Executive Chairman to focus on acquiring Bitcoin with a better strategy.
There were cases against Saylor and MicroStrategy for tax fraud by General Karl Racine. MicroStrategy denied the charges and said that it would take steps to dissolve them. The company has decided to sell about $500 million worth of Bitcoin to buy more Bitcoin. Hence, the company has already sold $46.4 million worth of Bitcoin.