Michael Saylor's company, MicroStrategy, recently further expanded its holdings with the acquisition of 397 Bitcoin, worth approximately $45,6 million. This occurred at an average price of $114.771 per coin, as shown in a recent filing with the U.S. Securities and Exchange Commission. This brings the company's total Bitcoin holdings to 641.205, acquired for an impressive $47,49 billion, with an average purchase price of $74.047 per Bitcoin. The year-to-date (YTD) return is 26,1%.
However, the past week was remarkable compared to previous periods. In the same context, MicroStrategy also purchased 390 Bitcoin for $43,3 million the previous week, bringing the October total to 778. BTC brings. This is one of the smallest monthly acquisitions in recent years. For comparison, in September the company acquired a whopping 3.526 Bitcoin, a 78% increase compared to October's purchases.
Analysts point out that this decline in buying could negatively impact Bitcoin's price recovery. Both MicroStrategy's purchases and demand from US spot Bitcoin exchange-traded funds (ETFs) are the main drivers of demand in 2025, according to the analytics platform CryptoQuant. This platform predicts that Bitcoin's price will only return to its previous high when these entities resume their large-scale accumulations.
According to Ki Young Ju, founder and CEO of CryptoQuant, current demand is primarily driven by ETFs and MicroStrategy, both of which have recently slowed their purchases. "If these two channels resume their purchases, market momentum will likely increase as well," he noted in a recent post. This observation underscores the need for active institutional involvement in the market recovery.
Current developments within MicroStrategy and broader institutional demand are crucial for investors following the dynamics of the crypto market. The questions now arising are not only of economic importance; they also highlight the complexity of the investment landscape in this innovative sector.
How important are MicroStrategy's purchases to the Bitcoin price?
MicroStrategy's purchases are significant because they serve as a key indicator of institutional demand for Bitcoin. Their buying patterns can directly impact the price, especially since these purchases have so far boosted market demand.
Why are ETF purchases so crucial for Bitcoin?
ETFs allow investors to invest indirectly in Bitcoin, increasing its popularity and acceptance as an asset. Capital inflows through these funds can significantly contribute to price recovery and stability.
What can investors expect from the Bitcoin market in the coming year?
Given current trends and the reliance on institutional buying, investors may want to closely monitor the development of MicroStrategy and ETF buying behavior. If these parties ramp up their activity again, it could have holistic implications for Bitcoin's price recovery.