MicroStrategy Now Holds Close to 3% of BTC’s Total Supply as Saylor Buys the Dip

The investment required a total disbursement of $243 million for an average price of $95,972 per coin and propelled the number of BTC tokens held by the firm to 450,000 BTC according to the corresponding SEC filing.

It means that MicroStrategy now holds 2.1% of the asset’s total supply and 2.3% of its current circulating supply.

This latest portfolio move for MicroStrategy comes possibly to take advantage of the latest weakness that the price of Bitcoin has experienced. In the past 30 days, BTC has retreated 6.5% amid fears that the Federal Reserve will slow down the pace at which is cutting interest rates in the United States.

Thus far in 2025, MicroStrategy’s BTC holdings have yielded a return of 0.25% in 2025 while the company’s $28.2 billion capital investment accumulates unrealized gains of $15.13 billion based on today’s BTC price.

The decentralized nature of the Bitcoin network is one of its main appeals to crypto enthusiasts and top backers of the technology. However, MicroStrategy’s increasing control of the token’s total supply could be a cause of concern down the road if they keep hoarding BTC.

Price Action Invalidates Head and Shoulders Pattern… At Least for Now

Yesterday’s sharp pullback briefly pushed the price of Bitcoin below the critical $90,000 support area but late buyers seem to have capitalized on this opportunity to grab some tokens at a much more affordable price.

The chart shows that sellers managed to push down the price to $89,164 at some point and may have trapped opportunistic short-sellers while triggering a significant number of stop-loss orders as liquidations mounted to over $460M in just 24 hours as we noted in a previous article.

Short-sellers were forced to cover their positions promptly as the price started to rise which may have exacerbated the buying spree that followed.

As a result, the head and shoulders pattern has been temporarily invalidated by both yesterday’s dragonfly doji – a bullish indicator – and today’s sharp increase in the price of BTC.

Moving forward, if sellers have effectively capitulated as these technical markers seem to be indicating, the price could rise to the next resistance area located at around $102,000 per coin.

A breakout above this area could signal that BTC bulls are ready to push the cryptocurrency to new heights on the eve of Donald Trump’s inaugural speech as the 47^th President of the United States on January 20.

A Growing Percentage of BTC’s Supply is Now in Control of Institutions – Is This Bullish?

The company’s total holdings are now nearly half of what Satoshi Nakamoto, the cryptic inventor of the Bitcoin network, holds in his dormant wallet.

On the corporate segment, MicroStrategy is, by far, the largest holder of BTC, distantly followed by Marathon Digital, which owned 25,945 BTC tokens by the end of November 2024, and Riot Platforms, which owned less than half of that number.

According to data from BitInfoCharts, other prominent BTC holders include top exchanges like Binance and Robinhood, whose cold wallets reportedly hold nearly 350,000 BTC tokens, and other cold wallets from hacked exchanges like MtGox and Bitfinex that hold approximately 175,000 BTC tokens.

As top institutional holders like BlackRock enter the space, a growing percentage of the total supply of BTC seems to be progressively being transferred to only a handful of institutions.

This could play in favor of the scarcity narrative and propel the price of BTC in the mid to long term. However, it could also raise questions about how these major players could influence the network’s direction and ethos if they manage to join forces to influence the project’s future via community proposals at some point.