By the Numbers: An Update on MicroStrategy’s Bitcoin Buying Frenzy

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Microstrategy has recovered more Bitcoin again in recent weeks, with the company adding an additional 8,440 BTC to its treasury.

Microstrategy Continues Bitcoin Accumulation, Company Now Holds 122,480 BTC In Total

Microstrategy has bought an additional 8,440 BTC in recent weeks, continuing its strategy of accumulating the cryptocurrency.

Microstrategy is a tech company that has built its primary corporate treasury strategy by accumulating as much Bitcoin as possible. The company first adopted this strategy in August 2020 and has since collected 122,480 BTC at an average price of $ 29,860 per coin.

The company has made the main selling point of its shares by exposing itself to BTC without actually owning the crypto. The company has taken on a lot of debt to build up its cash flow.

Arcane Research’s latest weekly report gathered relevant data regarding Microstrategy’s Bitcoin stack. Here is the table for that:

Microstrategy’s BTC Cash Growth Since August 2020 | Source: Weekly Arcane Research Update – Week 49

As the graph above shows, the tech company steadily made more purchases over the year and built its Bitcoin stack.

In February 2021, Microstrategy also hosted a conference to promote business adoption of BTC. Rumors at the time said that many large companies attended.

After the conference, information about some influential companies buying Bitcoin surfaced. For example, Tesla bought $ 1.5 billion worth of BTC in January.

As of the first quarter of 2021, no new companies outside of the crypto ecosystem have yet announced similar purchases. The report notes that there could be several reasons for this.

Related reading | Bitcoin Hashrate hits new record after Chinese crackdown

First, the broadening of corporate treasury strategy is quite unusual, and companies prefer to buy back stocks instead.

Second, there could be negative public relations associated with acquiring Bitcoin due to environmental concerns. Tesla suffered a similar backlash when its investment was first revealed.

And finally, given that Microstrategy’s aggressive buildup has made it one of the most pronounced whales in the market, some companies will make it a systematic risk to BTC.

Related reading | The biggest risk for Bitcoin? How quantum computers could harm BTC

In the end, the strategy was fairly profitable for Microstrategy, as their BTC stack now represents a profit of around $ 2.2 billion.

BTC price

As of this writing, the price of Bitcoin is floating around $ 47.6,000, down 2% over the past seven days. Over the past month, the crypto has lost 27% in value.

Below is a chart that shows the BTC price trend over the past five days.

The price of BTC has mostly seen a consolidation in recent days | Source: BTCUSD on TradingView Featured Image from Unsplash.com, Charts from TradingView.com, Arcane Research

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