MicroStrategy’s Bitcoin holdings nearing that of the U.S. government

MicroStrategy bought 14,620 units of Bitcoin for approximately $615.7 million in cash between Nov. 30 and Dec. 26 at an average price of $42,110 per BTC, according to a Dec. 27 Form 8-K filing submitted to the U.S. Securities and Exchange Commission (SEC).

As of Dec. 26, MicroStrategy holds 189,150 BTC, acquired for approximately $5.895 billion at an average price of $31,168 per BTC. Per the filing, the firm funded this purchase through sales of more than 1 million units of its class A common stock for $610 million during the period.

With its most recent purchase, MicroStrategy’s total BTC is now only 20,000 Bitcoin short of matching the U.S. government’s holdings at 210,429 Bitcoin. The purchase also brings the firm within striking distance of controlling a full 1% of the total supply.

The business intelligence firm’s recent acquisition follows its purchase of 6,067 BTC during the third quarter for $167 million.

MicroStrategy has been buying Bitcoin since 2020, and the company has continued with the strategy even after Michael Saylor, its founder and a notable Bitcoin bull, stepped down as its CEO. This continued acquisition has made its stock mirror Bitcoin performance, and some institutional investors have gained exposure to BTC by acquiring its MSTR shares.

Saylor has continued to emphasize Bitcoin’s security and reliability as the foremost store of value, presenting it as a unique asset for safeguarding against inflationary risks.

The company’s bullish stance on Bitcoin has proven lucrative, with MicroStrategy sitting on an unrealized profit exceeding $2.2 billion, according to Saylortracker, a website dedicated to tracking the company’s BTC purchases. Data from CryptoSlate shows that BTC is up around 160% on the year-to-date metric.

According to Bitcoin Treasuries data, MicroStrategy holds a total BTC amount that surpasses the reserves of any other public company by 14 times. Marathon Digital, the word’s largest BTC miner with a market capitalization of over $6 billion, is the closest in holdings but still significantly behind MicroStrategy.

Following the recent purchase, MicroStrategy’s MSTR shares have been boosted, climbing over 2% to approximately $620 as of press time. The shares’ performance has mainly been positive this year, reflecting a gain of more than 300% on the year-to-date metrics, according to Tradingview data.

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