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.