As reported earlier, MicroStrategy purchased 2,395 bitcoins worth about $42.8 million between November 1, 2022, and December 21, 2022. The company then sold 704 BTC for about $11.8 million on December 22 before purchasing another 810 BTC two days later.

The firm’s filing with the Securities and Exchange Commission (SEC) shows that the bitcoins were sold to generate tax benefits.

“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,” the company said.