14 Dec 2021
MicroStrategy adds 8,440 BTC to its holdings, now holds 122,480 BTC
In the last few weeks, MicroStrategy has maintained its aggressive bitcoin strategy by adding 8,440 BTC to its treasuries.
MicroStrategy has purchased an additional 8,440 BTC over the last few weeks. The company now holds 122,480 BTC bought at an average price of $29,860.Bitcoin stacking has been MicroStrategy’s corporate treasury strategy since August 2020. In February 2021, MicroStrategy held a conference to promote corporate adoption of bitcoin. It was rumored that many large and influential corporations were attending.In the aftermath, news regarding some corporations acquiring bitcoin reached the market. Tesla bought $1.5 billion worth of bitcoin throughout January and later on sold 10% of their holdings, leading them to hold approximately 40,000 BTC. In Norway, Aker bought 1170 BTC, and in Hong Kong, Meitu acquired 941 BTC. Additionally, Square bought more bitcoin, leading the company to hold 8,027 BTC. However, since Q1, 2021, no new companies from outside the crypto ecosystem have publicly announced any bitcoin purchases. Several reasons could explain the non-existent news on new companies adding bitcoin to their treasuries. First and foremost, expanding the corporate treasury strategy is relatively unusual, and in the last years, share repurchases have been a very common strategy. Second, Tesla saw some backlash on their investment due to bitcoin’s energy consumption. Adding bitcoin to the corporate treasuries might involve negative headlines.Third, with the aggressive purchases over the last year, MicroStrategy has become one of the most pronounced whales in bitcoin – at what point does MicroStrategy become a systemic risk for BTC? Michael Saylor’s vocal and eccentric behavior might also contribute to distancing more conservative corporate CEO’s from even considering the bitcoin treasury strategy.Nevertheless, for MicroStrategy, this strategy has been very fruitful so far as the company is currently $2.2 billion in profit on its bitcoin holdings.