According to a Form 8-K filing made on Wednesday, MicroStrategy sold 704 bitcoin worth $11.8 million for the first time since it began to retain the asset on its corporate balance sheet. According to the company's application:
“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.”
“As previously disclosed, on September 9, 2022, MicroStrategy entered into a Sales Agreement (the “Sales Agreement”) with Cowen and Company, LLC and BTIG, LLC, as sales agents (the “Agents”), pursuant to which MicroStrategy may issue and sell shares of its class A common stock, par value $0.001 per share (“Shares”), having an aggregate offering price of up to $500.0 million from time to time through the Agents. On December 28, 2022 the Company also announced that, during the period between October 1, 2022, and December 27, 2022, MicroStrategy had issued and sold an aggregate of 218,575 Shares under the Sales Agreement, at an average gross price per Share of approximately $213.16, for aggregate net proceeds to MicroStrategy (less sales commissions and expenses) of approximately $46.4 million.”
The paperwork states that on December 22, MicroStrategy sold the bitcoin. Two days later, the company purchased 810 bitcoin, bringing its total purchases between November 1 and December 24 to 2,395 bitcoin.
MicroStrategy currently owns 132,500 bitcoin, which it acquired for an average price of $30,397. The company began maintaining the asset on its balance sheet in August 2020.
The company disclosed a previously undisclosed plan to sell up to $500 million in Class A common stock, which it can use to increase its bitcoin holdings. According to the Dec. 28 filing, the company has sold shares valued at around $46.4 million.