Blockchain analytics powerhouse Arkham Intelligence has blown the lid off one of the most closely guarded secrets in the digital currency space. The firm claims to have tracked down a whopping 98% of MicroStrategy’s Bitcoin stash, pinpointing the whereabouts of approximately 186,000 out of 190,000 BTC. This revelation sheds light on the broader implications of corporate Bitcoin holdings and their management.
The Breakdown of Holdings
Arkham Intelligence’s sleuthing reveals a fascinating distribution of MicroStrategy’s Bitcoin treasure trove. It appears that a substantial portion of their digital gold, to the tune of 107,000 BTC, finds its home at Fidelity, nestled among the assets of other clients. Meanwhile, another hefty chunk, amounting to 79,000 BTC, enjoys the exclusivity of segregated custody, with Coinbase Prime playing the role of guardian. This meticulous breakdown not only highlights the strategic diversification of MicroStrategy’s holdings but also underscores the trust placed in Fidelity and Coinbase as custodians of this considerable digital wealth.
The revelation made by Arkham comes at a time when MicroStrategy’s Bitcoin portfolio is estimated to be worth an astounding $9.7 billion, depending on the current price of Bitcoin, which is hovering around $52,000. After conducting an in-depth investigation into the wallets of Fidelity Custody, the analytics company discovered a digital vault that contained more than 174,000 Bitcoins. The inflows of these Bitcoins could be traced back to famous exchanges including as Coinbase, Foundry USA, and Gemini. Following this revelation, a tiny portion of MicroStrategy’s Bitcoin, around 4,000 BTC, has not been accounted for, which adds an additional degree of mystery to the ongoing story.
MicroStrategy: The Corporate Bitcoin Behemoth
From August 2020 on, MicroStrategy has been actively purchasing Bitcoin, spearheaded by Executive Chair Michael Saylor. The company’s risky move into cryptocurrency started with a $250 million investment. This marked the start of a new era in which Bitcoin would be used as a backup asset by the business intelligence giant. Saylor revealed in early February that MicroStrategy had added 850 BTC to its holdings, bringing the total to a remarkable 190,000 BTC, and demonstrating the firm’s steadfast dedication to Bitcoin.
In addition to solidifying MicroStrategy’s status as the biggest corporate holder of Bitcoin, its strategic stockpiling of the cryptocurrency has paved the way for its possible inclusion in the S&P 500 index. Achieving this goal would be a big deal in the history of finance. It would connect the fate of Bitcoin with the fate of traditional financial markets and could make digital currencies a part of most people’s trading accounts.
There are, however, many obstacles in MicroStrategy’s way to joining the S&P 500, such as strict qualifying requirements and the need for a large market cap increase. Even with these problems, MicroStrategy’s recent stock price rise and steady profit growth point to a future where the company and Bitcoin could become important parts of almost every investment plan, from 401(k)s to pension funds.
