As Bitcoin posted some decent gains since the new year, MicroStrategy saw its shares rise 34.21%.
Proprietary trading firm Group One has purchased options to purchase 1.3 million shares of MicroStrategy (NASDAQ: MSTR), according to a filing with the Securities and Exchange Commission (SEC). Group One presents itself as a market maker in US stock opinions and provides liquidity for various securities. On the other hand, MicroStrategy is the largest independent publicly traded business intelligence company known for its Bitcoin holdings. The company was the first to acquire bitcoin as the Treasury Department’s primary reserve asset. Led by CEO and Bitcoin bull Michael Saylor, MicroStrategy made its first BTC purchase in 2020. The company continues to collect digital coins and owns more than 132,000 coins.
Group One owns 13.5% of MicroStrategy
According to the SEC filing, the 1.3 million shares also mean that Group One owns a 13.5% stake in MicroStrategy. Meanwhile, MSTR is currently trading at $190 per share after closing at 8.57. The company’s stock suffered along with BTC in 2022 due to its strong peg to the cryptocurrency. It plunged more than 70% last year as Bitcoin fell from around $48,000 in March to $16,500 by the end of the year. While the MSTR is down 13% over the past three months, it’s also down over 6% in the last month. As Bitcoin posted some decent gains since the new year, MicroStrategy also saw its shares rise 34.21%. Additionally, the business intelligence firm has become a proxy for investors seeking Bitcoin exposure given its exposure to the crypto asset.
On December 22, MicroStrategy conducted its first-ever BTC sale since Bitcoin’s adoption began. The company sold 704 BTC for about $11.8 million to gain tax benefits. MicroStrategy commented on the sale:
“MicroStrategy plans to carry back the capital losses resulting from this transaction against prior capital gains to the extent such carryback is available under current state income tax laws, which may result in tax benefits.”
Although MicroStrategy has a valid reason to sell its BTC, the company has broken a promise. CEO Saylor once said in an interview that the company is not a seller. He explained that the business intelligence firm’s strategy is only to acquire and hold Bitcoin. After the first-ever bitcoin sale, MSTR fell to its lowest level since August 2022, losing 1.1% to $136.63. However, the company bought back 810 coins a few days after the sale.
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Ibukun is a crypto/financial writer interested in sharing relevant information using non-complex words to reach all types of audiences. Besides writing, she enjoys watching movies, cooking and exploring restaurants in the city of Lagos where she lives.
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