September 19, 2021

MicroStrategy and other whales keep hoarding bitcoins

Michael Sailor tweeted yesterday that MicroStrategy acquired another 5,050 BTC worth $ 242.9 million in cash at an average price $ 48,099 per bitcoin, bringing the total amount of bitcoins owned by the company to 114,042 BTC.

BTC on the MucroStrategy balance: BTC balance (blue area) and average purchase price (orange line). : The block crypto

With 114,042 BTC on the company's balance sheet and approximately8.58 million shares outstanding, investors now own 1.3 million satoshi per MicroStrategy share, and bitcoin exposure per share has risen to 2%. As MicroStrategy continues to fund its BTC purchases by issuing common shares, the investor share of the company is diluted. In return, they get more Bitcoin exposure for every MSTR share.

Over the past few weeks, according toIn the statements (PDF) dated August 24 and September 13, MicroStrategy sold an additional 793,232 shares for a total of $ 577 million to buy more bitcoins. As announced in July, the open market sale agreement allows the company to sell up to $ 1 billion in new shares. To this day, Michael Sailor has adhered to his plan to purchase as many bitcoins as possible using whatever financial instruments at his disposal. And it doesn't look like he's going to stop.

Since the company's transition to the "bitcoin standard" on August 11, 2020, MSTRs have grown ~ 420%, outstripping the growth of the price of bitcoin itself, which has grown by ~ 290% over the same period.

Chart executed in TradingView

Whale watching

BTC Supply Volume Held by Whales, sthe beginning of September grew - to 67,195 BTC for a total of $ 6.13 million today. This is 3.1% more than in July this year, which indicates the presence of demand from large institutional buyers over the past two months. The whale-held Bitcoin supply is distributed among network entities with a balance of more than 1,000 BTC, excluding exchanges and well-known funds and trusts such as GBTC. MicroStrategy's last purchase of 5050 BTC accounts for 7.5% of this movement.

BTC supply held by whales

If we include in the calculation cohorts with a balance of 1000-10000, 10,000-100,000 and more than 100,000 BTC, excluding the well-known exchange wallets, a clear picture emerges. Since February of this year, both the total number of bitcoins held by whales and the number of such network entities (determined by clustering addresses in the blockchain using heuristic methods) began to decrease; however, the average amount of BTC per whale has grown quite significantly over the same period.

In simple terms, this means that somethe number of convinced whales continued to accumulate bitcoins, despite the upward and downward volatility seen since February, and after a summer price decline of more than 50%, the cumulative balance of whale-held BTC has resumed its upward trend.

In short, both the total amount of BTC held by whales and the average amount of BTC per such network entity are increasing. Big money is buying BTC. Right now. The numbers don't lie.

Bitcoin whale activity. Blue line - the number of whales, red - the total balance of whales, blue - the number of BTC per whale

Long-term held supply sets new highs


Bitcoin supply in long-term handsowners continue to set new record highs almost daily. That being said, the total supply held by this cohort of users has grown by 2 million coins since the end of March (when the 2021 lows were set). This is undoubtedly a bullish catalyst for the market and reflects the volume of accumulation on the part of strong hands during the volatility of 2021.

Long term owners are defined asholding their coins for more than 155 days (for why, see below). This means that today the date from which UTXOs are considered "long-term held" is April 11, 2021, just three days before the local top of the bitcoin market. Despite this, there has never been a time in the history of Bitcoin when long-term investors held more coins. Looks incredibly optimistic.

Classification of long-term and short-term owners. X axis - days from the date of purchase; Y-axis - coeff. weighing; red curve - long-term owners; blue curve - short-term owners

Threshold of 155 days from whichBTC balances have traditionally been considered “long-term,” based on the statistical significance of the data in retrospective testing of the UTXO spending probability. We wrote in detail about the classification and methods for determining long-term and short-term holders of BTC here.

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