MicroStrategy, the business intelligence firm led by Bitcoin advocate Michael Saylor, has added another 1,045 Bitcoin to its corporate treasury, spending approximately $29.3 million at an average purchase price of $28,016 per coin. The acquisition, disclosed in a filing with the Securities and Exchange Commission on April 5, 2023, reinforces the company’s position as the largest public holder of Bitcoin in the world.
TL;DR
- MicroStrategy purchased 1,045 BTC for ~$29.3M between March 24 and April 4
- Average buy price: $28,016 per Bitcoin
- Total holdings now stand at 140,000 BTC, worth approximately $4 billion
- Cumulative average purchase price across all holdings: $29,803
- Purchase coincided with U.S. government selling $215M in seized Silk Road Bitcoin
A Relentless Accumulation Strategy
The Tysons Corner, Virginia-based company has been on a Bitcoin buying spree since August 2020, when it first announced its strategy of holding BTC as a primary treasury reserve asset. This latest purchase, executed between March 24 and April 4, brings MicroStrategy’s total Bitcoin stash to 140,000 coins—roughly 0.67% of all Bitcoin that will ever exist.
At current prices hovering near $28,000, the company’s total holdings are valued at approximately $3.9 billion. However, the cumulative average purchase price of $29,803 means the company is still slightly underwater on its investment overall, though the gap has narrowed considerably as Bitcoin staged a powerful recovery in the first quarter of 2023.
Saylor announced the purchase on Twitter, drawing immediate reactions from the Bitcoin community. “US gov sells, MicroStrategy buys,” one user wrote, capturing the irony of the timing. The U.S. government had offloaded approximately $215 million in Bitcoin seized from James Zhong, who pleaded guilty to wire fraud related to the Silk Road marketplace.
Noteworthy Context: A First Sale, Then Back to Buying
Interestingly, this purchase comes just months after MicroStrategy sold Bitcoin for the first time in its history. In December 2022, the company sold 704 BTC at an average price of $16,776, collecting $11.8 million. That sale, driven by tax optimization purposes, raised eyebrows in the community—but the company quickly returned to its accumulation playbook.
The March purchase period also followed a massive acquisition in which MicroStrategy bought 6,455 BTC, demonstrating that the firm has been consistently building its position even as the broader market recovers from the turmoil of 2022.
Bitcoin’s Q1 Rally Sets the Stage
The purchase was made against the backdrop of Bitcoin’s strongest quarter in two years. The leading cryptocurrency surged approximately 73% in Q1 2023, outperforming major stock indexes including the S&P 500, the Dow Jones Industrial Average, and the Nasdaq. Analysts pointed to a combination of factors driving the rally, including easing inflation concerns, banking sector instability that renewed interest in decentralized assets, and growing institutional adoption.
As of April 5, Bitcoin was trading just below $28,000, with a market capitalization exceeding $545 billion and 24-hour trading volumes surpassing $17 billion. The price stability around the $28,000 level suggested that the market was consolidating gains made during the quarter, potentially setting the stage for further upside.
Why This Matters
MicroStrategy’s continued Bitcoin accumulation sends a powerful signal to both institutional and retail investors. Despite being slightly below its average purchase cost, the company’s unwavering commitment to its Bitcoin strategy—even after briefly selling—demonstrates a long-term conviction that goes beyond short-term price movements. The fact that MicroStrategy now controls 0.67% of Bitcoin’s total supply also raises important questions about corporate concentration in what was designed to be a decentralized asset. As more companies follow MicroStrategy’s lead, the dynamics of Bitcoin ownership could shift significantly in the years ahead.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments carry risk, and readers should conduct their own research before making investment decisions.
the timing of buying 1045 BTC while the US govt was dumping 215M in seized coins is peak irony. Saylor really said ill take those
the silk road bitcoin seizure story is crazy. James Zhong had 50k+ BTC hidden and the feds sold it right into Saylor’s buy order lmao
Still underwater at 29,803 average when BTC was at 28k. People forget Saylor was in the red for a long time on this strategy.
140,000 BTC is 0.67% of total supply. one company holding that much of a supposedly decentralized asset is worth talking about more