MicroStrategy, led by pro-Bitcoin advocate Michael Saylor, continues to make headlines with its significant bitcoin purchases. January 2024 witnessed the acquisition of 850 BTC by the company, amounting to an investment of $37.2 million.
Although the average price for the recent MicroStrategy bitcoin purchase stood at $43,700, a bit higher than the current market value, it aligns with January’s average BTC price.
MicroStrategy: Gobbling BTC
The recent purchase, revealed by Saylor on X, follows MicroStrategy’s substantial acquisition in the last quarter of 2023. During the period, the company procured a staggering 31,755 BTC, investing a colossal $1.25 billion at an average price of $39,411 per BTC.
It is worth noting that the digital asset market, particularly Bitcoin, experienced a notable surge in Q4 2023, with the price of bitcoin climbing from $27,000 in October to $40,000 by the end of November. Phong Le, President and CEO at MicroStrategy, states:
“We believe that the combination of our operating structure, bitcoin strategy, and focus on technology innovation provides a unique opportunity for value creation for our shareholders.”
MicroStrategy Bitcoin Acquisitions: A Slowing Pace?
MicroStrategy’s buying patterns exhibit periodic fluctuations. While October 2023 saw relatively fewer purchases, November and December recorded over 16,130 and 14,620 BTC acquisitions, respectively.
However, there is a noticeable shift in the company’s strategy when comparing the pace of purchases in January 2024 to the preceding quarter.
MicroStrategy seems to have adopted a more restrained approach in January, possibly influenced by the bitcoin price exceeding the $40,000 mark. Given this, one might anticipate a continued low pace of acquisitions in February.
Record-Breaking Bitcoin Holdings
MicroStrategy’s commitment to Bitcoin is nothing short of extraordinary. Among privately held companies listed on the stock exchange that own bitcoin, MicroStrategy stands out with a staggering 190,000 BTC.
In a distant second place is Marathon Digital Holdings, primarily involved in bitcoin mining, with a comparatively modest 15,700 BTC, highlighting MicroStrategy’s unparalleled dominance in the space. Tesla follows in third place with 9,700 BTC.
While MicroStrategy boasts a remarkable bitcoin holding, it’s essential to note that it is not the absolute largest holder globally. Bitcoin’s creator, known as Satoshi Nakamoto, still holds an estimated 1.1 million BTC. However, these coins haven’t been utilized or moved since 2011, leading to speculation about their status.
Surprisingly, Grayscale, which used to be the second-largest holder, has been left behind by digital asset exchange Binance, which holds over 560,000 BTC for its clients. However, unlike these entities that hold Bitcoin on behalf of their clients, MicroStrategy owns its bitcoin outright.
Significant Bitcoin in Miscellaneous Hands
Beyond the corporate sector, governments also play a role in bitcoin ownership. The U.S. government, is reported to hold 215,000 BTC, resulting from various seizures over the years.
Moreover, the Chinese government appears to possess a bitcoin reserve comparable to that of MicroStrategy.
Further scrutiny reveals other noteworthy holders. Block.one, a privately held non-listed company, holds 164,000 BTC; Mt.Gox, the ill-fated Japanese exchange from 2014, retains over 140,000 BTC; and the WBTC (Wrapped BTC) smart contract accounts for over 157,000 BTC.
Excluding the elusive Satoshi Nakamoto, MicroStrategy emerges as the preeminent private holder of bitcoin globally. The company’s strategic approach to bitcoin ownership continues to solidify its position as a major player in the digital asset space.
