MicroStrategy’s stock price dropped 11% last week, closing at $330 according to Yahoo Finance data. Despite this decline, the company’s Bitcoin (BTC) holdings 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 Exceed Next Bitcoin Halving’s Supply
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 surpasses the 328,125 BTC expected to be mined during the next halving epoch, projected from March 2028.
Bitcoin halving reduces block rewards by half every four years, slowing BTC supply growth. Following the April 2024 halving, miners now receive 3.125 BTC per block.
This will drop to 1.5625 BTC during the next halving, ensuring only 328,125 BTC will enter circulation over 210,000 blocks.
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This data underscores the magnitude of MicroStrategy’s holdings compared to Bitcoin’s scarcity-driven economics.
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 occurred on April 20, 2020, and reduced block rewards of 6.25 BTC to 3.125 BTC. This stage would continue at least till March or April, 2028 with the reward chopping down to 1.5625 BTC for each block mined.
During this upcoming cycle, miners are projected to produce 328,125 BTC, following Bitcoin’s design to gradually reduce supply growth until the 21-million-coin cap is reached.
Microstrategy Stock Price Pressures Persist
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 23 for $561 million at an average price of $106,662 per BTC.
Market analysts link 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, placing pressure on MicroStrategy’s shares, which closely track Bitcoin’s performance.
MicroStrategy became one of the first corporate players in the Bitcoin market showcasing that institutional participants are becoming increasingly involved in the industry.
In August 2020, under the leadership of the CEO Michael Saylor, the company started its Bitcoin acquisition process and its first purchase categorized Bitcoin as a treasury reserve.
Today, its holdings are valued at more than 2% of the BTC supply – the power of institutional accumulation shown within the sphere of scarcity.
Analysts believe that such enormous holdings highlight the ability of Bitcoin to remain a valuable asset for the long haul despite today’s issues.
Volatility Reflects Market Sentiment
The broader cryptocurrency market remains volatile. Bitcoin dominance is near 60%, and altcoins have struggled to sustain significant breakouts.
Meanwhile, MicroStrategy’s stock remains well above its 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 assessing strategies for navigating the next market cycle.
