MicroStrategy's Bitcoin Stash Hits 2.1% of BTC Supply, but There's Catch

MicroStrategy, an enterprise software company turned leveraged Bitcoin proxy, has become one of the top corporate Bitcoin holders, with its holdings accounting for 2.1% of the entire Bitcoin supply.

On-chain analytics platform IntoTheBlock highlighted this key fact in a recent tweet while noting a trend that has become apparent in recent weeks.

IntoTheBlock posted a chart alongside its tweet demonstrating the trend of MicroStrategy's Bitcoin buys since August 2020. Notably, the year 2024 saw a sharp upsurge in MicroStrategy Bitcoin buys. However, in recent weeks, specifically since late December, this trend has slowed.

In 2024 alone, MicroStrategy purchased 258,320 BTC for $22.07 billion, or almost $85,450 per BTC. As of Jan. 5, 2025, MicroStrategy holds 447,470 BTC acquired for about $27.97 billion, or almost $62,503 per Bitcoin.

Smaller but strategic purchases

On Jan. 6, MicroStrategy announced the acquisition of 1,070 BTC for approximately $101 million, or $94,004 per Bitcoin, just days after revealing that it would acquire more of the cryptocurrency through perpetual preferred stock, common shares and debt.

According to IntoTheBlock, this $101 million buy "continues a pattern of smaller, yet strategic, acquisitions."

MicroStrategy had previously purchased nearly $1 billion in BTC over the weeks of November and December, but the purchases have been smaller in recent weeks, even as BTC price has declined from record highs. With MicroStrategy well ahead of its capital goals, this is not a cause for concern.

MicroStrategy has bought Bitcoin for nine consecutive weeks, reflecting a trend of smaller yet strategic acquisitions as co-founder and chairman Michael Saylor aims to advance its Bitcoin holding strategy.

At the start of January, MicroStrategy announced its plans to raise $2 billion through one or more offerings of perpetual preferred stock, which would be senior to its class A common stock, in the first quarter of 2025.