MicroStrategy Buys Dip, Set to Debut Bitcoin Lightning Apps in 2023
- MicroStrategy bought 2,395 bitcoins at an average price of $17,181 for a total of $42.8 million between Nov. 1 and Dec. 21.
- It sold 704 BTC on December 22 and acquired approximately 810 BTC for $13.6 million in cash on Dec. 24.
- The company now holds 132,500 BTC, and the average purchase price of the same is $30,397, with a total value of $4.03 billion.
- MicroStrategy has plans to roll out Bitcoin Lightning Network-powered solutions and applications next year.
Many crypto companies remain bullish on the world’s biggest cryptocurrency, Bitcoin (BTC), and some have even gone on to bet their future on the digital currency. One of these tech giants is MicroStrategy, a software firm formed by Michael Saylor, who is a huge supporter of BTC. Interestingly, Saylor’s software services provider has once again purchased BTC, and that too during a dip.
MicroStrategy Bought the Dip
According to the filing from the company, MicroStrategy confirmed acquiring 2,395 bitcoins at an average price of $17,181 for a total of $42.8 million between Nov. 1 and Dec. 21. Moreover, the company also sold 704 BTC at $16,776 per coin for a total of $11.8 million on December 22. It is also crucial to note that Saylor’s company then acquired approximately 810 BTC for $13.6 million in cash, at an average price of $16,845 per coin on December 24.
However, in a recent interview with Bloomberg in early 2022, Saylor assured that his firm is only a buyer of Bitcoin and never thought about selling the leading cryptocurrency. “We’re only acquiring and holding Bitcoin, right? That’s our strategy. We’re not sellers.”
Interestingly, Saylor resigned from his position as the CEO of MicroStrategy and became the executive chairman of his company. He was no longer in charge of the day-to-day operations of the same.
“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, which may generate a tax benefit,” wrote the firm.
Moreover, it can also be confirmed that now, MicroStrategy holds 132,500 BTC, and the average purchase price of the same is around $30,397, with a total book value of $4.03 billion. Additionally, the market value of the entire holdings has declined by over $2.2 billion because of the fall in the price of BTC.
New Solutions Powered by Bitcoin Lightning Network
According to the Executive Chairman of MicroStrategy, Michael Saylor, the company has plans to roll out Bitcoin Lightning Network-powered solutions and applications next year. The Lightning Network is a layer on the base layer of Bitcoin, which currently has billions of addresses attached to it.
Interestingly, if the solutions become popular among institutions and retail investors, we can expect millions of people to use the Lightning Network. Saylor stated that the new solutions from MicroStrategy based on the Lightning Network would enable consumers to process bitcoin transactions faster, cheaper, and more efficiently.
“What if we actually created an enterprise deployable Lightning wallet on one side, and then on the other side … what if we created an enterprise server that you could use to monetize any website?” Saylor commented on the release.
Saylor added that his company wants “to make it possible for any enterprise to spin up a Lighting wallet and a Lightning wallet architecture in the matter of an afternoon and deploy it to [thousands or millions of people].”