While BTC is gradually recovering from the recent market downturn, many institutional investors are still capitalizing on it to increase their BTC holdings. One of them is MicroStrategy, which continues to pile up its BTC holdings. The company’s CEO, Micheal Saylor, again promised investors that it would keep utilizing market dips to increase its BTC holdings.
On Thursday, Saylor issued a letter to the company’s stakeholders and investors. Part of the latter stated the need for the company to be frugal with its reserve strategy. He opined that the company’s frugality with its reserve would enable it to increase its BTC holdings as it deems it.
Microstrategy’s BTC Holdings Close To 130K
MicroStrategy remains the only publicly traded firm with the most significant BTC holdings. Per data from multiple analytics firms, the asset management firm’s BTC holdings are estimated to be about 130K. Based on current values, MicroStrategy’s BTC holdings are valued at $5.2b, as the company bought an additional 4,198 BTC a couple of weeks ago.
However, Tesla’s BTC holdings are valued at $1.8B (based on current value). Hence, the electric vehicle manufacturer’s holdings come at a distant second behind MicroStrategy’s BTC holdings, as the difference in the value of their BTC holdings is about $3.3B. In the letter referenced above, Saylor revealed that the company’s success in investing in BTC is a result of entering the crypto market early and purchasing BTC at the right time.
Nevertheless, crypto investment analysts estimate that MicroStrategy would have made a profit of $1.3b with its BTC investment. Saylor also stated in the letter that the firm’s choice to hold BTC has been remarkably successful.
Saylor Remains A BTC Advocate
Part of Saylor’s letter confirmed that the firm’s BTC investment has been profitable despite the struggle of its executives to get liability insurance. Consequently, Saylor’s decisiveness over BTC investments has given the company executives enough insurance. MicroStrategy has been able to acquire this many BTC holdings because Saylor’s 69% holdings make him the majority shareholder and can influence the board’s decision.
It is also why other firms cannot emulate MicroStrategy in investing and holding similar amounts of BTC as MicroStrategy. Saylor has remained a strong BTC advocate since his first BTC purchase during the early stage of the COVID-19 pandemic two years ago. Recently, it was widely reported that MicroStrategy was willing to secure a BTC collateralized loan. The company intended to use it to increase its holdings of the leading cryptocurrency.
Institutional Investments Affect BTC Value Positively
Despite BTC’s poor performance recently, its value hasn’t suffered because of investments by institutional investors, most notably Terra and MicroStrategy. Terra’s recent BTC purchases have closed the gap behind Tesla’s BTC holdings, and the difference is now only 790 BTC. One of the latest WhaleAlert data revealed that BTC investors withdrew 30K BTC from the Coinbase exchange within the past day. Also, Cryptoquant CEO, Ki-Young Ju, opined that this massive outflow might be an institutional investor move to own more BTC following president Biden’s crypto executive order.