Business software firm MicroStrategy now acts as a Bitcoin surrogate through leverage, and it’s amassed a significant amount of Bitcoin, holding approximately 2.1% of the total Bitcoin in circulation, making it one of the leading corporate Bitcoin holders.
Recently, the on-chain analysis platform IntoTheBlock emphasized an interesting detail in a tweet, pointing out a pattern that’s been emerging over the past few weeks.
At the moment, Microstrategy owns approximately 2.1% of all existing Bitcoins. Their recent $101 million purchase is another instance in a series of deliberate, incremental investments they’ve been making.
— IntoTheBlock (@intotheblock) January 11, 2025
Recently, IntoTheBlock shared a graph accompanying their tweet, highlighting MicroStrategy’s Bitcoin acquisition pattern from August 2020. Interestingly, the year 2024 marked a significant increase in MicroStrategy’s Bitcoin purchases. However, over the past few weeks, particularly since late December, this trend appears to have decelerated.
In the year 2024, MicroStrategy bought a total of 258,320 Bitcoins for approximately $22.07 billion, which equates to around $85,450 per Bitcoin. As of January 5th, 2025, MicroStrategy owns over 447,470 Bitcoins that they acquired for roughly $27.97 billion, translating to approximately $62,503 per Bitcoin.
Smaller but strategic purchases
On January 6th, MicroStrategy disclosed their purchase of 1,070 Bitcoins for approximately $101 million, which translates to about $94,004 per Bitcoin. This announcement came only a few days after they announced plans to obtain more Bitcoin through preferred stock, common shares, and debt.
As a crypto investor, I’ve noticed that recent purchases like this $101 million deal appear to be part of a strategy of tactical, albeit more modest, acquisitions, as suggested by IntoTheBlock.
In November and December, MicroStrategy made approximately $1 billion worth of Bitcoin purchases over a period of weeks. However, these large-scale purchases have decreased recently, despite Bitcoin’s price dropping from all-time highs. Given that MicroStrategy has already surpassed its capital objectives, this reduction in buying is not something to worry about.
For the past nine weeks running, MicroStrategy has been purchasing Bitcoin, indicating a pattern of tactical but modest investments in line with co-founder and chairman Michael Saylor’s goal of refining their Bitcoin investment approach.
In the early days of January, I learned that MicroStrategy was planning to amass a staggering $2 billion by selling perpetual preferred stocks sometime during Q1 of 2025. This securities offering would hold precedence over their Class A common stock.
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2025-01-12 13:55