March 29, 2024
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MicroStrategy and other whales keep hoarding bitcoins

Michael Saylor tweeted yesterday that MicroStrategy purchased another 5,050 BTC for $242.9 million in cash at the average price$48,099 per Bitcoin, bringing the company's total Bitcoin ownership to 114,042 BTC.

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

With 114,042 BTC on the company’s balance sheet and approximatelyWith 8.58 million shares outstanding, investors now hold 1.3 million satoshis per MicroStrategy share, and Bitcoin exposure per share has risen to 2%. As MicroStrategy continues to fund its BTC purchases through the issuance of common stock, investors' stake in the company's equity is being diluted. In return, they receive more exposure to Bitcoin per share of MSTR.

Over the past few weeks, according toAccording to statements (PDF) dated August 24 and September 13, MicroStrategy sold an additional 793,232 shares for a total of $577 million to buy more Bitcoin. As announced in July, the open market sales agreement allows the company to sell up to $1 billion in new shares. So far, Michael Saylor has stuck to his plan to purchase as much Bitcoin as possible using whatever financial instruments are 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

Supply volume of BTC held by whales, withearly September grew to 67,195 BTC for a total of $6.13 million to date. This is up 3.1% from July this year, indicating demand from large institutional buyers over the past two months. The supply of Bitcoin held by whales is distributed among network entities with balances greater than 1000 BTC, excluding exchanges and well-known funds and trusts such as GBTC. MicroStrategy's latest purchase of 5050 BTC represents 7.5% of this move.

BTC supply held by whales

If we include cohorts with a balance in the calculation1000-10,000, 10,000-100,000 and over 100,000 BTC, excluding 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 decline; however, the average number of BTC per whale increased 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

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Bitcoin supply in long-term handsowners continues to set new record highs almost daily. At the same time, the total supply held by this cohort of users has increased by 2 million coins since the end of March (when the 2021 minimums were set). This is without a doubt a bullish catalyst for the market and reflects the amount of accumulation by strong hands during the volatile 2021 period.

Long term owners are defined asholding their coins for more than 155 days (see below for why this is so). So, as of today, the date from which UTXOs are considered “long-term held” is April 11, 2021, just three days before the local Bitcoin market top. And despite this, there has never been a time in Bitcoin's history 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.

 

BitNews disclaims responsibility forany investment recommendations that may be contained in this article. All opinions expressed express exclusively the personal opinions of the author and respondents. Any actions related to investment and trading in crypto markets involve the risk of losing invested funds. Based on the data provided, you make investment decisions carefully, responsibly and at your own risk.

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