MicroStrategy has 130,000 Bitcoin after $6 million purchase
The founder and executive chairman of software company MicroStrategy announced a $6 million Bitcoin purchase. According to a document filed with the US Securities and Exchange Commission (SEC), the company revealed that it added 301 BTC to its treasury as of September 19th2022.
The US-listed company was one of the first to include Bitcoin in its corporate strategy back in 2020. Initially, MicroStrategy and its founder bought the cryptocurrency when it was trading below $10,000, and have continued to grow their holdings now to a total of 130,000 BTC.
According to MicroStrategy’s executive chairman, the software company has bought as much Bitcoin as $3.98 billion at an average price of 30,639 BTC. At the time of writing, BTC’s price is trading at $19,000 with a loss of 16% in the last week.
The number one cryptocurrency by market cap has suffered massive downside pressure that has forced it to crash from its all-time high of around $69,000 to today’s level. This represents an 80% crash from the previous high.
Unlike other publicly traded companies, MicroStrategy has continued to buy Bitcoin on the way down. The company’s executive chairman and former CEO claims that they have a long-term view of the cryptocurrency with no plans to sell their funds.
The software company has issued debt and raised funds through various financial instruments to grow its Bitcoin treasury. This has led many to speculate about a possible margin call from MicroStrategy’s brokers if the price of BTC continues to crash.
However, Saylor has clarified that the company is very far from becoming a forced seller and becoming insolvent. Data from BTC Treasuries indicates that MicroStrategy is the largest BTC holder of US listed companies.
Their 130,000 BTC is followed by Tesla’s 10,000, Core Scientific’s 8,500 BTC, Marathon Digital Holdings 8,100 BTC, Square’s 8,000 BTC and others.
The largest Bitcoin holder in the world
Additional data made sure of by monitor Ecoinometrics indicates that MicroStrategy is one of the largest active Bitcoin holders on the planet. In total, public companies have about 208,400 BTC, the software company alone has 130,000.
In contrast, the private sector owns 341,384 BTC, while the former exchange Mt. Gox still has about 141,000 BTC. This BTC may enter the market in the coming months as victims of the platform’s 2014 hack await compensation.
In the financial sector, Exchange Traded Funds (ETFs) own the largest amount of Bitcoin with a total of 897,000. The largest fund is the Grayscale Bitcoin Trust with a total of around 650,000 BTC, followed by the Purpose Bitcoin ETF with 30,000.
In the public sector, there is a total of 48,188 BTC held by nations with Ukraine holding the most massive amount at 46,351. This government has taken BTC and crypto donations to fight against Russia.
As the image below shows, all of these entities control around 7% of Bitcoin’s total supply, or 1,451,013 BTC.
Here is the latest overview of #Bitcoin the state coffers.
Notable changes from the last time we posted this:
– Voyager, gone.
– Terraform labs, gone.
– Celsius, gone.h/t to @BTCtreasuries for the data. pic.twitter.com/aifVGkVWGo
— ecoinometrics (@ecoinometrics) 7 September 2022
