MicroStrategy, the largest holder of Bitcoin in the world (according to Bitcoin Treasuries), has purchased 2,500 BTC in the last 60 days, increasing its presence in the market. The company continues to lead the industry in terms of crypto adoption despite the current bear market that started back in November 2021 when Bitcoin hit $69,000 per coin.
MicroStrategy Adds 2.5K BTC in the last 2 months
The software company MicroStrategy has added 2,400 BTC for $44.6 million in the last 2 months. This is despite the fact that they have sold a small portion of their holdings for the first time. The information about the most recent purchase was published in a recent filing with the U.S. Securities and Exchange Commission (SEC).
According to data shared by Bitcoin Treasuries, MicroStrategy holds 0.631% of the total Bitcoin in existence (21 million). Therefore, with the most recent purchase, MicroStrategy holds 132,500 BTC for a total value of $2.2 billion.
Other companies that hold BTC include Marathon Digital Holdings, holding 10,055 BTC or 0.048% of the total Bitcoin supply, and Tesla, which is currently the owner of 9,720 BTC. This shows that MicroStrategy continues to add BTC to its holdings, increasing its presence in the crypto market.
Dozens of companies have already purchased Bitcoin and could continue to do so in the future. However, it is worth pointing out that the most significant increase tends to happen when the market starts moving higher rather than lower. Since November 2021, Bitcoin and other virtual currencies have been in a bear trend, which affected the whole market.
In 2022, multiple crypto and blockchain projects such as Terra (LUNA) and FTX (FTT) imploded, damaging the whole crypto ecosystem and affecting the price of most digital assets. Additionally, with these issues affecting the whole crypto market, companies and institutional investors think twice before placing their funds in the industry.
Another thing that is worth taking into account is related to the fact that the U.S. Federal Reserve (FED) could pivot in the near future. Changes in the monetary policy of the United States have been good indicators of changes in the crypto market as well. For example, when interest rates move higher, companies tend to move their investments from risk assets to bonds.
That being said, if the U.S. Federal Reserve and other central banks (especially in developed countries) start reducing their interest rates, then we could see a new flow towards risk assets, including digital currencies. Multiple companies would be ready to enter the space with a clear signal from central banks.
Finally, regulatory issues are also having a large impact on digital assets. There are still no clear legal frameworks for companies to operate in, which is creating barriers for firms to enter the space. It is not clear how digital currencies are taxed, how they should be stored, or how they have to engage with multiple protocols and parties.