MicroStrategy (MSTR) is on the verge of surpassing Grayscale in Bitcoin (BTC) holdings, becoming one of the largest institutional holders of BTC.
MicroStrategy’s Bitcoin Holdings Are Increasing, While Grayscale’s GBTC Is Declining
MicroStrategy holds 252,220 BTC, or 1.2% of the total supply of 21 million BTC, as of its latest regulatory filing on September 20. In comparison, Grayscale’s Bitcoin Trust (GBTC) and its newer, lower-fee Bitcoin Mini Trust (BTC) currently hold just over 254,000 BTC in total.
Grayscale had 620,000 BTC before the launch of its US spot BTC ETFs in January, and the approval has led to a reduction in its holdings. Grayscale’s GBTC, which charges 1.50%, has seen a sustained outflow of assets, while its more competitive 0.15% Bitcoin Mini Trust currently holds 33,753 BTC.
MicroStrategy recently raised more than $1 billion in capital, and analysts believe it will likely be used to purchase additional BTC. An acquisition of this magnitude would make MicroStrategy the fifth-largest Bitcoin holder globally, pushing its holdings beyond Grayscale. It would be surpassed only by BlackRock, Binance, Coinbase, and BTC founder Satoshi Nakamoto. Notably, while BlackRock, Binance, and Coinbase hold BTC for their clients, MicroStrategy holds BTC on its own balance sheet.
Led by Chairman Michael Saylor, MicroStrategy began its aggressive BTC acquisition strategy in August 2020 by using its cash reserves and raising capital from the markets. The company’s average purchase price for BTC is just over $39,000, well below the current Bitcoin price of $64,000. Today, MicroStrategy’s BTC holdings are valued at approximately $16 billion.
*This is not investment advice.