MicroStrategy Holds Over 1% of Total Bitcoin Supply

The company MicroStrategy, listed on the Nasdaq stock exchange and known for its aggressive investment strategy in Bitcoin, has strongly consolidated its position in the cryptocurrency sector. They just announced the purchase of an additional 9,245 BTC for a total value of up to 623 million USD, increasing their ownership percentage to over 1%.

Additionally, the company disclosed a multi-million dollar Bitcoin purchase, bringing its total Bitcoin holdings to 214,246 BTC. The company made the transaction primarily through the sale of convertible bonds, in a continuation of its efforts following last week’s $821.7 million Bitcoin acquisition.

MicroStrategy’s move into the Bitcoin space began in 2020, under the leadership of President and Co-Founder Michael Saylor. Mr. Saylor has claimed Bitcoin is a hedge against inflation and an alternative to holding cash.

MicroStrategy has acquired an additional 9,245 BTC for ~$623.0M using proceeds from convertible notes & excess cash for ~$67,382 per #bitcoin. As of 3/18/24, $MSTR hodls 214,246 $BTC acquired for ~$7.53B at average price of $35,160 per bitcoin. https://t.co/oeYJGgiuy0

— Michael Saylor⚡️ (@saylor) March 19, 2024

With the latest transaction, MicroStrategy now has about $14 billion in Bitcoin on hand, purchased at an average price of about $35,160 per BTC. Meanwhile, Bitcoin price is currently trading at around $64,750, after falling more than 9.5% over the past week from its all-time high of $73,400.

Bitcoin’s supply cap at 21 million coins adds a new layer of appeal to MicroStrategy’s strategy. With approximately 19.7 million issued tokens, the company’s token holdings represent a significant portion of the total available supply, which is expected to reach its maximum by 2140. As reported by CryptoGlobe, these short-term investments have suffered losses of an estimated $3.3 billion due to MicroStrategy’s large holdings of Bitcoin, causing the company’s stock price to surge along with the price of the cryptocurrency this year.

MicroStrategy’s Bitcoin Holdings. Source: Saylortracker

MicroStrategy has publicly identified itself as a “Bitcoin Development Company” and may continue to purchase Bitcoin. Executive Chairman and Co-Founder, Michael Saylor, has denied concerns about growing competition in Bitcoin purchases and pointed out that the company is well positioned to capitalize on the transformation of digital capital from traditional analog systems to the digital economy.

Related: Peter Schiff Warns of Major Bitcoin (BTC) Crisis

Saylor makes the argument that Bitcoin has become a trillion-dollar asset class, comparing its importance to major technology companies such as Apple, Google and Microsoft. However, he noted that Bitcoin, unlike these companies, represents a comprehensive asset class capable of holding large amounts of capital, and he argued that it competes with traditional store-of-value assets systems such as gold, S&P 500 and real estate, it is predicted that capital will continue to move from these asset classes to Bitcoin due to its technical superiority.