Bernstein Believes MicroStrategy (MSTR) Could Eventually Acquire 4 Percent of The Global Bitcoin Supply, Up From The Current 1.7 Percent Holding

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As anticipation builds around Bitcoin hitting the psychologically critical $100,000 price level, MicroStrategy (MSTR) has emerged as one of the most potent near-term bullish influences on the cryptocurrency’s price trajectory, thanks to the firm’s relentless buying of Bitcoin. Today, MSTR has provided another bullish impetus by announcing its next batch of BTC purchases.

MicroStrategy has acquired 55,500 BTC for ~$5.4 billion at ~$97,862 per #bitcoin and has achieved BTC Yield of 35.2% QTD and 59.3% YTD. As of 11/24/2024, we hodl 386,700 $BTC acquired for ~$21.9 billion at ~$56,761 per bitcoin. $MSTR https://t.co/79ExzXk4UM

— Michael Saylor⚡️ (@saylor) November 25, 2024

To wit, in what constitutes a new record, MicroStrategy has just disclosed that it recently acquired 55,500 BTC at a total cost of $5.4 billion.

MicroStrategy bought another 55,500 $BTC($5.4B) at an average price of $97,862 last week!#MicroStrategy currently holds 386,700 $BTC($37.77B), with an average price of $56,761 and an unrealized price of ~$15.8B.https://t.co/vqNUjeC6DB pic.twitter.com/PGnUfxeHwd

— Lookonchain (@lookonchain) November 25, 2024

This brings MicroStrategy’s total Bitcoin holdings to 386,700 BTC, with an average cost basis of just $56,761.

Bear in mind that MicroStrategy recently announced plans to sell notes worth $2.6 billion, up from its previous plans to raise $1.75 billion.

MicroStrategy $MSTR currently owns ~1.7% of the world’s Bitcoin, valued at ~$32B. Bernstein estimates this could grow to 4% over the next decade as their base case.

— Wall St Engine (@wallstengine) November 25, 2024

Meanwhile, as per a new analysis by Bernstein, MicroStrategy could hold as much as 4 percent of the global Bitcoin supply by the end of the “next decade.” For reference, the firm currently holds 1.7 percent of the world’s BTC.

Of course, MicroStrategy’s BTC-based binge buying is currently having a “tail wags the dog” effect on Bitcoin, as per a separate analysis by 10x Research.

QCP: The market seems to be expecting BTC to trade sideways until December as attention shifts towards ETH in the near term. But Michael Saylor hinted at purchasing even more BTC. MicroStrategy’s purchases definitely fueled BTC’s post-election breakout so the market is surely…

— Wu Blockchain (@WuBlockchain) November 25, 2024

Do note that as Bitcoin’s price continues to consolidate just below the $100,000 price level, the market appears poised to switch to Ethereum as the next big momentum engine. However, MicroStrategy’s continuing BTC purchases have forced traders and analysts alike to remain glued to Bitcoin’s price action.

There is evidence that some larger hedge funds have been reducing their bitcoin exposure into the recent highs.

Reason: Short-term profit-taking and rebalancing before year-end.

That’s why the market will probably digest this fairly quickly. https://t.co/nCUAHT275i

— André Dragosch, PhD | Bitcoin & Macro ⚡ (@Andre_Dragosch) November 25, 2024

For those wondering why Bitcoin continues to consolidate, the short-term profit-taking from institutions ahead of the year-end rebalancing is likely to blame.

Withdrawals from exchanges are intensifying.

Feels like a beach ball under water and we’re going to blow past $100k #Bitcoin. Tick tock! pic.twitter.com/PuH24SLNor

— Bitcoin Munger (@bitcoinmunger) November 25, 2024

Meanwhile, Bitcoin withdrawals from exchanges are accelerating  This is usually considered a bullish signal as off-exchange BTC balances are typically headed towards cold storage.

Bitcoin supply vs demand 👇 pic.twitter.com/XiqwrnRN3F

— HODL15Capital 🇺🇸 (@HODL15Capital) November 25, 2024

And, Bitcoin’s supply/demand imbalance continues to favor the bulls.

#BTC

Already bouncing after producing a -4% dip which is perfectly normal in Price Discovery

Bitcoin is forming a short-term range just below $100,000

And in the absence of strong rejections around here, BTC should be able to break beyond $100k soon$BTC #Crypto #Bitcoin https://t.co/UrPPQ5M6mq pic.twitter.com/ayESlXgo9k

— Rekt Capital (@rektcapital) November 25, 2024

Finally, as per an analysis by Rekt Capital, if Bitcoin does not experience a strong rejection from current levels, a push beyong $100,000 is virtually assured.