Another day, another MicroStrategy bitcoin purchase. The Michael Saylor-led company is ruthless in its BTC accumulation strategy. In a similar position, bitcoin mining giant Marathon Digital Holdings doubles down on its no-sell policy. Which is also a BTC accumulation strategy. Will these two giants go down in history as pioneers?
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These companies are embracing the Bitcoin Standard as a way of life. Let’s look at the stats from MicroStrategy and Marathon, where do these new acquisitions put you on the BTC leaderboard? And how did the market react to both news?
MicroStrategy, even more aggressive
The man himself, Michael Saylor, announced the acquisition via his very active Twitter:
“MacroStrategy has purchased an additional 4,167 bitcoins for ~$190.5 million at an average price of ~$45,714 per bitcoin. As of 4/4/22, MicroStrategy owns ~129,218 bitcoins purchased for ~$3.97 billion at an average price of ~$30,700 per bitcoin.”
MacroStrategy has purchased an additional 4,167 bitcoins for ~$190.5 million at an average price of ~$45,714 per #bitcoin. As of 4/4/22 MicroStrategy #hodls ~129,218 bitcoins purchased for ~$3.97 billion at an average price of ~$30,700 per bitcoin. $MSTRhttps://t.co/Z45OuJU5KI
—Michael Saylor⚡️ (@saylor) April 5, 2022
To clarify, MacroStrategy is a subsidiary of MicroStrategy. This appears to be the purchase the company made with the $200 million bitcoin secured loan took a week ago. Our sister site Bitcoinist explains and clarifies:
“The company took the loan through MacroStrategy, a subsidiary created for the purpose of holding Bitcoin funds from its parent company. According to the release, the $205 million loans were issued under the Silvergate Exchange Network (SEN) and its Leverage program and are due to mature on March 23, 2025.
The SEN was launched in 2020, the statement clarifies, to address the demand for BTC-backed loans.”
Although 129,218 BTC is a lot for a single entity, it is good to remember that these are not Michael Saylor coins. The treasury belongs to MicroStrategy, a public company owned by many. Still, they own almost triple what Tesla owns. And MicroStrategy keeps buying.
Many people talk about buying the dip. But when the crash comes, they panic and sell (rather than buy).
This is how you do it. 👍 https://t.co/VcAB6NeQoc
— CZ 🔶 Binance (@cz_binance) April 5, 2022
Binance CEO Changpeng Zhao reacted to the news with high praise. “A lot of people talk about buying the dip. But when the crash comes, they panic and sell (rather than buy). This is how you do it,” he wrote.
BTC price chart for 04/05/2022 on Kraken | Source: BTC/USD on TradingView.com
Marathon, even more “Hodling”
On a recent press release, Marathon Digital Holdings announced numbers that sound very healthy. The company “produced a record 1,258.6 bitcoins automined during Q1 2022, an increase of 556% from 191.8 bitcoins automined in Q1 2021 and a sequential increase of 15% from 1,098.2 bitcoins automined in the fourth quarter of 2021″. Furthermore, in March alone, they “successfully deployed 1,320 miners.”
On the increase, the company’s CEO, Fred Thiel, said:
“In the first quarter of 2022, we increased our bitcoin production by 15% from the previous quarter and produced a record 1,259 bitcoins, even as the global hash rate increased by approximately 17%.”
Where does that put them on the bitcoin leaderboard? Well, Marathon “increased total bitcoin holdings to approximately 9,373.6 BTC with a fair market value of approximately $427.7 million.” The company’s accumulation strategy began in October 2020, the last time Marathon sold bitcoin.
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MicroStrategy, the leaderboard and the market
According to the list of bitcoin treasuriesthese acquisitions place both companies at the extremes of the Top 5. That is to say:
Micro Strategy, 125,051 BTC
Tesla Inc., 42,902 BTC
Galaxy digital shares, 16,400 BTC
Voyager Digital LTD, 12,260 BTC
Marathon Digital Holdings, 8,956 BTC
However, the market seems to have reacted negatively to the news. At 9am, BTC was trading in the $47K range. It fell continuously throughout the day and around noon it was trading in the $45,500 range. Is MicroStrategy to blame? Or was it just a coincidence?
Featured Image by terimakasih0 on Pixabay | Charts by TradingView
This post MicroStrategy acquires 4,167 BTC and Marathon owns 1,259 self-mined BTC
was published first on https://www.newsbtc.com/news/bitcoin/microstrategy-acquires-4167-btc-and-marathon-holds-1259-self-mined-btc/