Disclosure: The creator of this story owns shares in Technique (MSTR).
When govt chairman Michael Saylor confirmed on Technique’s (MSTR) Q1 2026 earnings name on Might 6 that the corporate was ready to promote bitcoin, it appeared to mark a shift for the world’s largest publicly traded company holder of the cryptocurrency. However the transfer wouldn’t be unprecedented. In December 2022, Technique bought bitcoin for tax-loss harvesting functions — the identical rationale the corporate now seems to be signaling to the market as soon as once more.
On Dec. 22, 2022, Technique bought 704 bitcoin for roughly $11.8 million at $16,776 per coin, however instantly repurchased 810 bitcoin two days later.
The sale was designed to hold again capital losses towards earlier features and generate a tax profit. A tax loss harvesting occasion.
“MicroStrategy plans to hold again the capital losses ensuing from this transaction towards earlier capital features, to the extent such carrybacks can be found beneath the federal earnings tax legal guidelines at the moment in impact, which can generate a tax profit”.
Bitcoin fell 23% in Q1 2026, from $87,500 to $67,700. Below FASB honest worth accounting guidelines adopted Jan 1, 2025, Technique marks its total bitcoin holdings to market each quarter, in Q1 posted a $12.54 billion loss which pushed unrealized losses straight via the earnings assertion and producing a $2.2 billion deferred tax asset throughout its increased value foundation holdings.
Based on the MSTR earnings name, assuming an $80,000 bitcoin worth, Technique has bought over 434,000 BTC above $80,000 producing a $7.6 billion unrealized loss and a $2.2 billion deferred tax asset at a 29% tax charge.
If bitcoin recovers and Technique sells appreciated bitcoins, that $2.2 billion tax can offsets future features.
The first objective for the corporate is to extend “bitcoin per share” which is the ratio of Technique’s whole bitcoin holdings divided by its whole diluted shares excellent.
Using proceeds from the bitcoin sale is to retire the $8.2 billion in convertible debt, buy MSTR widespread inventory when the a number of to internet asset worth falls under 1.22x or fund $1.5 billion in annual dividend obligations from its perpetual most well-liked inventory Stretch (STRC).
MSTR is up 1% in pre-market buying and selling, whereas bitcoin trades above $81,000.
