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Microstrategy holds almost 1% of all Bitcoins

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Key points to remember

  • MicroStrategy’s filings put its Bitcoin holdings at 130,000 Bitcoins, worth $2.5 billion, after the latest purchase this week.
  • This constitutes 0.62% of the total Bitcoin supply.
  • The other 36 public companies that have invested in Bitcoin have combined holdings equal to 0.61%.
  • These holdings pale in comparison to anonymous founder Satoshi Nakamoto, who owns 1 million Bitcoins, equivalent to about 5.2% of the total supply.
  • The private company Block.one, which is behind the EOS cryptocurrency, owns more Bitcoins than MicroStrategy, with 140,000 Bitcoins, which equates to two-thirds of one percent of the total supply.
  • Tesla sold 75 percent of its holdings earlier this year and currently has 10,725 coins.

As Bitcoin adoption has steadily increased, attention has focused on what companies are holding on their balance sheets. Having become common practice with Tesla’s purchase last year, a slow but steady stream of companies have been buying Bitcoin in the hope that it will appreciate over the long term while offering diversification benefits.

We wanted to assess which public companies held the most Bitcoin, so we examined the data.

1. Microstrategy

Look up MicroStrategy on Wikipedia and you will see that the company’s description is “business intelligence, mobile software and cloud-based services.”

In reality, it is a Bitcoin holding company.

If we look at their balance sheet, we can see that their revenue last year was $510 million. Meanwhile, they currently have five times that value – $2.5 billion – on their balance sheet in Bitcoin, following another purchase this week of 301 Bitcoins.

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Co-founder Michael Saylor is the man driving the vision, and his thoughts on Bitcoin sometimes border on religious worship.

“Bitcoin is a swarm of cyber wasps in the service of the goddess of wisdom, feeding on the fire of truth, getting smarter, faster and stronger behind a wall of encrypted energy.

 
 

2. Galaxy Digital Holdings

Galaxy Digital Holdings is next, although with assets worth only $750 million, its stake is three times smaller than MicroStrategy’s.

It makes sense that the financial services firm has a lot of Bitcoin: it specializes in digital assets, which means that, unlike MicroStrategy, its business is related to the world’s largest cryptocurrency.

3. Voyager Digital

In third place is Voyager Digital with $232 million in Bitcoin.

Perhaps Voyager, more than any other, symbolizes just how bad the markets have been this year for Bitcoin. The cryptocurrency lender filed for bankruptcy in July after the contagion crisis triggered a wave of withdrawals as it did not have enough cash to deal with them.

4. Tesla

Tesla surprised the market by buying a large number of Bitcoins, worth $1.5 billion, last year. However, earlier this year they announced in their quarterly reports that they had sold 75% of the coins and that the remaining coins are currently worth only $200 million.

The decision to sell is due to environmental concerns regarding Bitcoin mining, which is obviously important to the electric vehicle manufacturer.

For what it’s worth, Elon Musk said in March that he would not personally sell his Bitcoins (or Ethereum or Doge). Again, the richest man in the world says a lot of things on Twitter, I think it’s fair to say.

Some critics point out that a large amount of Bitcoin’s limited supply is held by a small number of wallets. The concern is that these wallets may have an undue impact on the network as a result.

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As far as public companies are concerned, this concern does not seem significant outside of MicroStrategy’s 0.62% stake.

Block.one

Interestingly, looking at private companies, there are some large known wallets. The most notorious is Mt Gox, which holds 141,686 Bitcoins, or 0.675% of the total supply – some of which will be distributed to customers who were hacked in the infamous scandal years ago, following the conclusion of a lengthy legal process.

However, Block.one, the company behind the EOS cryptocurrency, owns 140,000 Bitcoins, more even than MicroStrategy’s holdings and only behind Mt. Gox. Interestingly, there is not as much talk about the company’s huge holdings as there is about the other whales on this list.

The following chart aggregates the holdings of public and private companies.

 
 

Their staggering number of holdings in Block.One constitutes about 0.67% of the total Bitcoin supply.

In conclusion, MicroStrategy is the undisputed leader in terms of Bitcoin holdings among public companies, but when compared to private companies as well, Block.one is in the lead.

But none of them come close to the more than one million Bitcoins and more than 5% of the supply that is in Satoshi Nakamoto’s wallets.

Sources

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