MicroStrategy founder Saylor: Considering increasing Bitcoin holdings, total holdings have exceeded 709,000 coins

MicroStrategy Founder Michael Saylor announced on January 22nd that he is considering increasing his holdings, having already purchased over $2 billion worth of Bitcoin this week. MicroStrategy owns 709,000 BTC, accounting for 3% of the total supply, far surpassing the second-largest holder Mara with 53,000 BTC. Analysts believe this move is a bet on the passage of the “Clarity Act,” as MicroStrategy has accumulated significant gains since its initial Bitcoin holdings in 2020, enough to withstand a 17% decline.

Michael Saylor Contrarily Bets on Legislative Favorability

Bitcoin prices have fallen, but this seems to have prompted MicroStrategy to increase its Bitcoin holdings. The world’s largest digital asset management company purchased over $2 billion worth of Bitcoin this week, a move revealed by CEO Michael Saylor on the X platform. This surprised many crypto observers, but an analyst stated that this aligns with Saylor and his company’s long-term investment strategy.

For those less familiar, MicroStrategy (MSTR) is a digital asset management firm whose main business model is holding cryptocurrencies. Recently, this model has not been effective for the company, as Bitcoin has fallen nearly 17% over the past year and another 10% last week. The recent crash in Bitcoin is related to macroeconomic tensions between the US and Europe, causing volatility in both cryptocurrencies and stock markets.

Therefore, MicroStrategy’s purchase is surprising, especially considering that last week a key piece of crypto legislation called the “Clarity Act” faced unexpected setbacks, making this move even more remarkable. However, an analyst believes that MicroStrategy’s large investment in Bitcoin is because, despite current obstacles, the legislation is expected to pass soon.

Benchmark analyst Mark Palmer said: “MicroStrategy has adopted a opportunistic approach to Bitcoin purchases. The crypto space is volatile, and the ‘Clarity Act’ is under review in the Senate.” This judgment reveals the logic behind Saylor’s accumulation: buying at lows caused by market panic and legislative uncertainty, with the expectation of substantial returns once the legislation passes. This contrarian strategy of “fear when others are greedy” has been Saylor’s winning formula over the past few years.

Key Data on MicroStrategy’s Weekly Accumulation

Purchase Volume: Over $2 billion

Total Holdings: Over 709,000 BTC

Market Share: About 3% of Bitcoin’s total supply

Market Environment: Bitcoin down 17% over the past year, down 10% last week

Investment Logic: Betting on the imminent passage of the “Clarity Act”

In terms of capital scale, a weekly purchase of over $2 billion is a huge investment even for MicroStrategy. This demonstrates Saylor’s strong confidence in the current price levels, viewing this as a rare buying opportunity. Such large-scale contrarian accumulation is extremely rare in financial markets, typically undertaken only by investors who truly believe in the long-term value of the asset.

709,000 BTC Holdings Far Exceeds Second Place by 13 Times

MicroStrategy began investing in Bitcoin in 2020, transforming from an ordinary software company into the largest digital asset holder. The company currently owns over 709,000 BTC, about 3% of Bitcoin’s total supply, far surpassing any publicly listed company. The second-largest Bitcoin holder is Mara Holdings, with about 53,000 BTC, a fraction of MicroStrategy’s holdings.

The contrast between 709,000 and 53,000 BTC highlights MicroStrategy’s absolute dominance in institutional Bitcoin holdings. This scale of holdings is not only a numerical difference but also signifies a fundamental strategic divergence. Mara Holdings, as a Bitcoin mining company, holds Bitcoin as a natural extension of its business. In contrast, MicroStrategy, as a software firm, has turned its balance sheet into a Bitcoin treasury—an aggressive strategy unprecedented in corporate finance history.

What does a 3% market share imply? The maximum Bitcoin supply is 21 million coins; after accounting for lost coins, the actual circulating supply is around 19 million. MicroStrategy’s 709,000 BTC represents approximately 3.7% of the circulating supply. For a decentralized global asset, control of nearly 4% by a single entity is remarkably concentrated.

From an influence perspective, MicroStrategy’s buying and selling decisions significantly impact Bitcoin’s price. When Saylor announces large purchases, it often triggers market follow-on buying, pushing prices higher in the short term. Conversely, if MicroStrategy is forced to sell due to financial pressures (a scenario short sellers are betting on), it could trigger panic selling. Therefore, MicroStrategy is not only the largest holder but also a “central bank” like presence in the Bitcoin market.

Massive Profits Enable Continued Accumulation

The past year’s crypto downturn has shrunk most digital asset funds. However, MicroStrategy’s fund has been able to buy more Bitcoin because, since accumulating this mainstream cryptocurrency in 2020, it has realized huge gains and has sufficient capital to endure a tough year. Palmer said: “Due to its scale and advantageous position, MicroStrategy can withstand Bitcoin price declines, whereas many other digital asset management firms face the risk of share price discounts.”

This advantage stems from MicroStrategy’s early strategic foresight. In August 2020, when Bitcoin was around $11,000, Saylor began building a position. Most subsequent purchases occurred between $20,000 and $50,000. Even at an average cost of $30,000 (likely lower in reality), the current price of $89,000 still implies nearly a 3x unrealized profit. This massive paper gain provides MicroStrategy with ample financial buffer.

MicroStrategy’s financing ability is also a key advantage. The company has continuously raised funds through issuing convertible bonds and secondary offerings to buy Bitcoin. Since stock prices are highly correlated with Bitcoin’s price, rising Bitcoin also boosts MicroStrategy’s stock, enabling more favorable financing conditions. This positive cycle is highly effective in a bull market.

However, this model also carries risks. If Bitcoin remains depressed or enters a bear market, MicroStrategy’s stock will be pressured, and financing costs may rise or even become unavailable. In extreme cases, if Bitcoin falls below MicroStrategy’s average cost, the company could face insolvency risk. The market has been discussing MicroStrategy’s “liquidation price,” i.e., the Bitcoin price at which forced liquidation would occur. While Saylor repeatedly emphasizes that the company is not at risk of forced liquidation, such concerns remain central to short-seller narratives.

Other Institutions Follow: BitMine Buys Ethereum in Large Quantities

Michael Saylor’s company is not the only one purchasing cryptocurrencies this week. Another digital asset management firm, BitMine, has also bought a large amount of Ethereum, currently holding about 3.5% of the circulating supply. Ethereum’s circulating supply is approximately 120 million coins, so 3.5% equates to about 42 million ETH, worth roughly $126 billion at $3,000 per ETH.

BitMine’s bullish stance on Ethereum contrasts with MicroStrategy’s Bitcoin bet. This indicates that digital asset management firms are starting to diversify, no longer solely betting on Bitcoin. Ethereum’s smart contract capabilities, DeFi ecosystem, and institutional-grade applications make it the most attractive alternative to Bitcoin for allocation.

This kind of large-scale institutional holding is changing the structure of the crypto market. As firms like MicroStrategy and BitMine control several percentage points of Bitcoin and Ethereum supply, market liquidity and price discovery mechanisms are affected. This is a clear signal of the crypto market shifting from retail dominance to institutional control.