Benzinga - MicroStrategy Inc., led by Chairman Michael Saylor, has made considerable investments in Bitcoin over the past several years. The buying activity has also picked up in recent months, as Bitcoin continues to soar and set new all-time highs.
MicroStrategy's most recent purchase of Bitcoin occurred this month. In early March, it sold $700 million worth of convertible bonds intending to use the funds to buy more Bitcoin. Many were awaiting the details of the purchase, which were released on March 18.
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Saylor took to X to give investors an update on the transactions. MicroStrategy bought an additional 9,245 Bitcoin for around $623 million using the funds from the convertible notes. The tokens were bought at an average price of $67,382. The transactions brought MicroStrategy's total Bitcoin holdings to 214,246. The entire position was acquired for around $7.5 billion or $35,160 per token.
The position is up nearly 100%, creating roughly $6.2 billion in unrealized gains.
MicroStrategy has long been the largest institutional holder of Bitcoin. However, this recent buy marked a huge milestone in the company's position. With the most recent buy, the company now holds 1.02% of the Bitcoin supply that will exist, and the percentage could be higher based on different assumptions.
The total supply of Bitcoin is continuously growing but at a decreasing rate because of Bitcoin halvings. The supply reaches 21 million tokens in about 2140. Today, around 19.7 million tokens are in circulation. If you use this number for the supply of Bitcoin, MicroStrategy holds 1.08% of available tokens.
Another view on the supply is that some wallets have been lost, meaning that the Bitcoin inside of them is effectively gone. While it is impossible to know for sure how many of these wallets are gone forever, estimates generally place the number of lost Bitcoins at between 4 million and 6 million.
There is a possibility that the actual amount of circulating Bitcoin is 6 million less than the listed amount. In this case, there are only 13.7 million tokens. Based on these estimates, MicroStrategy holds over 1.5% of the total circulating supply.
Thinking about how much of the supply is owned by MicroStrategy is important, as it is likely to continue holding for some time. Saylor recently said that "Bitcoin is the exit strategy" when asked about potentially selling. By holding and buying more, MicroStrategy can have a significant impact on the price of Bitcoin.
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