Michael Saylor’s Strategy bought nearly $2 billion of Bitcoin

Despite growing market concerns tied to US President Donald Trump’s upcoming tariff announcement, Michael Saylor’s Strategy bought nearly $2 billion of Bitcoin

Michael Saylor, the co-founder of Strategy (formerly MicroStrategy) (NASDAQ:MSTR), announced on Friday via X post that the firm bought 22,048 Bitcoin (BTC) at an average price of $86,969. This recent purchase adds nearly $2 billion to the company’s total Bitcoin acquisitions, which now amount to over 528,000 at an average price of $67,458.

3/3 We completed the purchase of 22,048 #Bitcoin for $1,920,999,968 at an average price of $86,969 per coin. This brings our total BTC holdings to over 528,000 acquired for over $35,630,000,000 at an average price of $67,458 per coin.

— Michael Saylor (@michael_saylor) March 31, 2024

The company is now the world’s largest corporate Bitcoin holder and surpassed the 500,000 Bitcoin holdings milestone on March 24, days after Saylor hinted at an upcoming Bitcoin buy as the company announced the pricing of its latest tranche of preferred stock on March 21.

The firm is currently up over 21% on its Bitcoin holdings with an unrealized profit of over $7.7 billion, according to Saylortracker data.

The new purchase comes despite investor concerns related to President Donald Trump’s upcoming tariff announcement on April 2, which may set the tone for Bitcoin’s price trajectory throughout the month.

The announcement is expected to detail reciprocal trade tariffs targeting top US trading partners, a development that may increase inflation-related concerns and limit demand for risk assets like Bitcoin.

“This sell-off isn’t the end of the bull run — it’s a healthy reset,” Andrei Grachev, managing partner at DWF Labs, told Cointelegraph. “Markets overreact to tariffs and macro headlines, but long-term fundamentals haven’t changed.”

Despite never selling any Bitcoin, Strategy may have to pay taxes on its unrealized gains of over $7.7 billion, which had previously soared to $19 billion at the end of January, as Cointelegraph reported.

The firm may have to pay federal income taxes on its unrealized gains, according to the Inflation Reduction Act of 22. The act established a “corporate alternative minimum tax” under which Strategy would qualify for a 15% tax rate based on the adjusted version of the company’s earnings, according to a January 24 report in The Wall Street Journal.

However, the US Internal Revenue Service (IRS) might create an exemption for BTC under Trump’s more crypto-friendly administration.