A Shift in Crypto Holdings: MicroStrategy Closes in on Grayscale’s Bitcoin Dominance
In a surprising turn of events, MicroStrategy is poised to surpass Grayscale as the largest holder of bitcoin, thanks to its aggressive capital-raising strategies. With over 252,000 bitcoins in its coffers, MicroStrategy is mere thousands of coins away from overtaking Grayscale’s dwindling stash.
Grayscale, once the undisputed champion of bitcoin holdings, has seen a significant exodus of tokens since the introduction of U.S. spot ETFs in January. Its Bitcoin Trust (GBTC) has shrunk from a staggering 620,000 tokens to a mere 254,000, split between GBTC and its newer, lower-fee Bitcoin Mini Trust (BTC).
Meanwhile, MicroStrategy has been quietly amassing a war chest of over $1 billion, which is expected to be deployed to further bolster its bitcoin holdings. If utilized, this influx of capital would catapult MicroStrategy to the fifth-largest holder of the cryptocurrency, trailing only institutional giants BlackRock, Binance, Satoshi Nakamoto, and Coinbase.
Notably, MicroStrategy’s bitcoin purchases are made directly for its own account, unlike BlackRock, Binance, and Coinbase, which hold coins on behalf of their clients. Under the visionary leadership of Michael Saylor, MicroStrategy embarked on its bitcoin-buying spree in August 2020, leveraging its balance sheet to make strategic purchases. The company’s average acquisition price stands at approximately $39,000, significantly lower than bitcoin’s current market value of around $64,000.
Grayscale, on the other hand, has struggled to maintain its market share, largely due to its decision to maintain a relatively high 1.50% fee for its GBTC. This has led to a rapid decline in assets, with the Bitcoin Mini Trust being the sole bright spot, albeit with a modest 33,753 tokens under management. As the crypto landscape continues to evolve, MicroStrategy’s bold bets on bitcoin may soon pay off in a major way.
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