Yet another MicroStrategy Bitcoin purchase. Michael Saylor is a forceful leader in the company’s BTC accumulation strategy. Marathon Digital Holdings is in a similar situation. It doubles down its no-selling policy. This is also an accumulation strategy for bitcoin. These two titans will be remembered as pioneers in the history of Bitcoin.
Related reading: Treasury Management Firm says CFOs should avoid risk, Bitcoin won’t become a corporate vehicle| Treasury Management Firm Says CFOs Avoid Risk, Bitcoin Won’t Become Corporate Vehicle
Let’s look at MicroStrategy and Marathon’s stats, companies adopting the Bitcoin Standard as a way of life. Which new acquisitions place them in the BTC leaderboards? How did the market respond to these news items?
The MicroStrategy is even more aggressive
Michael Saylor himself announced the purchase via his active Twitter account:
“MacroStrategy has purchased an additional 4,167 bitcoins for ~$190.5 million at an average price of ~$45,714 per bitcoin. As of 4/4/22 MicroStrategy hodls ~129,218 bitcoins acquired for ~$3.97 billion at an average price of ~$30,700 per bitcoin.”
https://twitter.com/saylor/status/1511315882886246409
MacroStrategy (a MicroStrategy affiliate) is the correct clarification. This appears to have been the deal the company bought with MicroStrategy. $200M bitcoin-collateralized loanThey took it a week before. Bitcoinist, our sister website, explains and clarifies.
“The company took the loan via MacroStrategy, a subsidiary created with the purpose of holding its parent company’s Bitcoin funds. The release stated that the loans totalling $205 million were made under Silvergate Exchange Network’s (SEN) Leverage Program and will be matured on March 23, 2025.
The SEN was launched in 2020, the release clarified, to address the demand for BTC collateralized loans.”
Even though 129,218 BTC is a lot for just one entity, it’s beneficial to remember that those are not Michael Saylor’s coins. MicroStrategy owns the Treasury, which is owned by several public companies. They own three times the amount of Tesla’s. MicroStrategy continues to buy.
https://twitter.com/cz_binance/status/1511337405911080970
Binance’s CEO Changpeng Zhao reacted to the news with high praise. “Many people talk about buying the dip. They panic when they see the dip and decide to sell instead of buying. This is how you do it,” he wrote.
BTC Price Chart for April 5, 2022 at Kraken | Source: BTC/USD on TradingView.com
Marathon, Even More “Hodling”
A recent press releaseMarathon Digital Holdings released very encouraging numbers. The company “produced a record 1,258.6 self-mined bitcoin during Q1 2022, a 556% increase from 191.8 self-mined bitcoin in Q1 2021 and a 15% sequential increase from 1,098.2 self-mined bitcoin in Q4 2021.” Plus, in March alone, they “successfully deployed 1,320 miners.”
About the increase, the company’s CEO Fred Thiel said:
“In the first quarter of 2022, we increased our bitcoin production 15% from the prior quarter and produced a record 1,259 bitcoin even as the global hash rate rose by approximately 17%,”
This puts them at the top of the bitcoin leaderboard. Well, Marathon “increased total bitcoin holdings to approximately 9,373.6 BTC with a fair market value of approximately $427.7 million.” The company’s accumulation strategy began in October 2020, the last time Marathon sold bitcoin.
Related Reading: Allied Payment Partners NYDIG adds Bitcoin to Corporate Treasury| Allied Payment Partners NYDIG, Adds Bitcoin To Corporate Treasury
MicroStrategy and the Leaderboard, as well as The Market
Based on The Bitcoin Treasuries listingThese acquisitions placed both companies in the top five. This is:
- MicroStrategy, 125,051 BTC
- Tesla Inc. 42,902 BTC
- Galaxy Digital Holdings, 16.400 BTC
- Voyager Digital LTD, 12,260 BTC
- Marathon Digital Holdings 8,956 BTC
The market seemed to react negatively to this news. BTC was trading in the $47K area at 9 AM. The price of Bitcoin dropped throughout the day, and by noon was in the $45.5K area. MicroStrategy is to blame? Was it just an accident?
Charts by TradingView| Charts by TradingView