TL;DR Breakdown
- MicroStrategy buys 2,500 bitcoins in the last two months
- The firm’s Bitcoin assets have lost 45% of their value, with an average purchase price of $30,397
- MicroStrategy will provide software programs and solutions that utilize the Bitcoin Lightning Network
Microstrategy currently holds about 132,500 bitcoins following its most recent purchases . According to Microstrategy creator Michael Saylor, the biggest cryptocurrency in the world has become “the institutional-grade digital asset” this year.
Microstrategy Inc., a company with a Nasdaq listing, disclosed that it has added to its corporate treasury’s bitcoin holdings. In its filing with the U.S. Securities and Exchange Commission (SEC), Microstrategy clarified that the 2,500 coins were acquired. The business’s founder and executive chairman, Michael Saylor, tweeted.
MicroStrategy has increased its #Bitcoin Holdings by ~2,500 #BTC. As of 12/27/22 @MicroStrategy holds ~132,500 bitcoin acquired for ~$4.03 billion at an average price of ~$30,397 per bitcoin. $MSTRhttps://t.co/lcMeULcGQk
— Michael Saylor⚡️ (@saylor) December 28, 2022
The American software business MicroStrategy disclosed that on December 22 it sold a portion of its Bitcoin reserves for the first time. This does not, however, imply that they have changed their stance on Bitcoin or stopped being positive, as co-founder Michael Saylor continues to support it wholeheartedly. The action underscores the company’s ongoing dedication to cryptocurrencies and its commitment to growing its portfolio of digital assets.
In the end, the trades led to a 2,500 BTC rise in MicroStrategy’s bitcoin holdings. Currently, the business run by Michael Saylor is in possession of 132,500 BTC, which it purchased for around $4.03 billion, or $30,397 per bitcoin, on average. The Virginia-based company is presently dealing with an unrealized loss of approximately $1.8 billion as a result.
814 Bitcoins Bought by MicroStrategy for $13.6 Billion
Bitcoin MicroStrategy
In an SEC filing, MicroStrategy disclosed that it had sold 704 BTC for around $11.8 million, which was a measure of tax efficiency given that the value of the cryptocurrency had declined since 2020, when it first started purchasing it.
By using the capital losses from this transaction and offsetting them against prior capital gains, MicroStrategy is taking advantage of federal income tax regulations. However, this can result in a sizable tax gain, which would be beneficial for the business.
The business unexpectedly changed course and paid a whopping $13.6 million for 810 BTC. Again, this was in addition to the 2,395 Bitcoins that were acquired for a grand total of $42.8 million in exceptional investments into Bitcoin in the previous month. With this additional acquisition, the business has already amassed almost 2,500 BTC since starting its enterprise.
MicroStrategy Plans to Release its Bitcoin Lightning Solutions
On Twitter, MicroStrategy’s Executive Chairman Michael Saylor, revealed some brand-new information regarding the company’s strategy for BTC in 2023. Saylor stated that by introducing Lightning Solutions, the software company hopes to have a bigger impact on the Bitcoin ecosystem.
A layer-2 payment protocol called the Lightning Network sits on top of the blockchain of Bitcoin and permits off-chain transactions, increasing throughput and cutting costs.
MicroStrategy, a business intelligence and technology company well-known for its sizable Bitcoin holdings, has been looking to bolster its Lightning Network-versed team. Most recently, the company announced it was looking to hire a software engineer to develop a Lightning Network-based software-as-a-service platform.
Saylor discussed how CMOs may leverage the Lightning Network to entice consumers by rewarding them with satoshis for undertaking tasks like leaving positive reviews or finishing surveys during the Twitter Spaces discussion.
Additionally, he added, the business intends to enable any enterprise to spin up Lightning infrastructure in an “afternoon.”
The CEO of MicroStrategy brought up his Lightning wall cybersecurity concept once more. This concept is essentially a Bitcoin-based barrier that would shield websites from cyberattacks by asking users to make a deposit in Satoshi.
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