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MicroStrategy’s relentless bitcoin accumulation
Michael Saylor announced today on Twitter that MicroStrategy has purchased an additional 5,050 bitcoin for $ 242.9 million in cash at an average price of $ 48,099 per bitcoin, bringing the company’s total inventory to 114,042 bitcoin.
With 114,042 Bitcoin and roughly 8.58 million shares outstanding, investors now own 1.3 million sats per MicroStrategy share, with Bitcoin per share up 2%. As MicroStrategy issues more common stocks to fund their Bitcoin buying spree, investors are giving up some of their property due to the increased stock dilution. In return, they will receive more Bitcoin per share of MicroStrategy stock.
In recent weeks, MicroStrategy, in its August 24 and September 13 announcements, sold an additional 793,232 shares for a total of $ 577 million to buy more Bitcoin. As announced in July, their Open Market Sale Agreement allows them to sell up to $ 1 billion in new shares. So far, Michael Saylor is pursuing his original plan to buy as much Bitcoin as possible through every financial vehicle at his disposal. And it doesn’t look like he’s going to stop anytime soon.
Since the company introduced a Bitcoin standard on August 11, 2020, MSTR shares have risen 419.9%, outperforming Bitcoin price, which is down 279.0% over the same period.
The supply of Bitcoin held by whales increased in September – an increase of 67,195 Bitcoin to a total of 6.13 million. That’s 3.1% more than in July this year, suggesting increased demand from larger institutional buyers over the past two months. The offering held by Walen includes companies holding over 1,000 Bitcoin, excluding wallet balances and other well-known holdings such as GBTC. MicroStrategy’s latest 5,050 bitcoins account for 7.5% of this movement.
If you add up the Bitcoin supply from companies with a balance of 1,000-10,000, 10,000-100,000 or over 100,000 BTC and subtract the stock market balances from the metric, the picture is clear. Since February, both the total whale balance and the number of whale entities began to decline (entities are a heuristic identifier of a cluster of addresses linked together on the blockchain); however, the BTC per whale began to increase quite significantly.
Simply put, it means that despite the upward and downward volatility, a number of convicted whales have continued to accumulate since February, and after falling over 50% in summer prices, the whales aggregate BTC balance has resumed its upward trend.
TLDR: Both the total BTC inventory of whale companies and the average BTC inventory per whale are increasing. Big money is buying right now. The numbers don’t lie.
The supply of long-term owners continues to break all-time highs
The supply of Bitcoin held by long-term holders continues to break all-time highs on a daily basis, with the total amount of Bitcoin held by the cohort being over 2 million more than it was on 17th 2021. This is without a doubt a bullish catalyst and shows how much the HODLers accumulated during the volatility of 2021.
Since the long-term holder’s rating is 155 days (for the reasons explained below), the current date for a UTXO to qualify as a “long-term” holder is April 11, 2021, just three days before the local peak of the Bitcoin market . Even so, there has never been more Bitcoin from long-term investors. Incredibly bullish.
The time threshold for a Bitcoin balance to be considered “long-term” is 155 days, and this is due to the statistical significance of the data when back-testing the UTXO spend probabilities. For more information on quantifying long-term versus short-term owners, see here.