MicroStrategy’s share price fell 11% last week, closing at $330, according to Yahoo Finance. Despite this decline, the company’s Bitcoin (BTC) stake has surpassed a major milestone, eclipsing the projected mining output for the next halving epoch.
This stark contrast between the company’s Bitcoin strategy and its stock performance underscores the mixed market sentiment surrounding institutional crypto investments.
BTC Holdings exceeds the offer of the next Bitcoin halving
As of December 29, 2024, MicroStrategy holds an impressive 444,262 BTC, acquired at an average price of $62,257 per coin.
This total, valued at $42.2 billion at Bitcoin’s current price of $94,928, now exceeds the 328,125 BTC expected to be mined during the next halving epoch, scheduled for March 2028.
The Bitcoin halving cuts block rewards in half every four years, slowing the growth of BTC supply. After the April 2024 halving, miners now receive 3.125 BTC per block.
This will drop to 1.5625 BTC during the next halving, ensuring that only 328.125 BTC will enter circulation over 210,000 blocks.
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This data highlights the size of MicroStrategy’s stake compared to an economy driven by Bitcoin scarcity.
Halving is an inherent event within the Bitcoin blockchain. It occurs approximately once every four years or when 210,000 blocks are mined.
The last halving took place on April 20, 2020 and reduced the block reward from 6.25 BTC to 3.125 BTC. This phase would continue until at least March or April 2028 with the reward reduced to 1.5625 BTC for each mined block.
During this upcoming cycle, miners are predicted to produce 328,125 BTC, following Bitcoin’s design to gradually reduce supply growth until the cap of 21 million coins is reached.
Microstrategy share price pressures continue
MicroStrategy’s aggressive Bitcoin acquisitions haven’t shielded its stock from volatility. The stock fell 11% last week, closing at $330. Despite adding 5,262 BTC on December 23rd for $561 million at an average price of $106,662 per BTC.
Market analysts attribute this decline to Bitcoin’s failure to sustain momentum above $95,000, leading to cautious positioning by traders.
Bitcoin rose 1.74% last week, closing at $95,027 after hitting a high of $99,887. This resistance near $100,000 pushed BTC to a low of $92,360, putting pressure on shares of MicroStrategy, which closely monitors Bitcoin’s performance.
MicroStrategy has become one of the first corporate players in the Bitcoin market, showing that institutional players are increasingly involved in the industry.
In August 2020, under the leadership of CEO Michael Saylor, the company began its process of acquiring Bitcoin and with its first purchase, Bitcoin was categorized as a treasury reserve.
Today, its assets are valued at more than 2% of the BTC supply – the power of institutional accumulation displayed within the sphere of scarcity.
Analysts believe such huge holdings underscore Bitcoin’s ability to remain a valuable asset in the long run despite today’s problems.
Volatility reflects market sentiment
The broader cryptocurrency market remains volatile. Bitcoin’s dominance is close to 60% and altcoins have struggled to sustain a meaningful breakout.
Meanwhile, shares of MicroStrategy remain well above their 52-week simple moving average of $172.06, reflecting long-term investor confidence.
As Bitcoin eyes key support levels around $92,000, traders and institutional players alike are evaluating strategies for navigating the next market cycle.
