MicroStrategy continues to accumulate Bitcoin as it hits all-time highs in July, and the total crypto market cap breaches the $4 trillion mark.
MicroStrategy co-founder Michael Saylor signaled an impending Bitcoin purchase on Sunday, as the company’s total holdings crossed $71 billion.
The treasury company made its most recent purchase on July 14, when it bought 4,225 BTC for $472.5 million, bringing its total holdings to 601,550 BTC, valued at over $71.4 billion.
About 66.5% is up for the company on its Bitcoin investment, accounting for over $28.5 billion in unrealized gains, according to SaylorTracker.
Bitcoin treasury companies, led by MicroStrategy, continue to be one of the main drivers of Bitcoin demand in the current market cycle, alongside exchange-traded funds (ETFs), institutional investors, and centralized crypto exchanges.
MicroStrategy’s Value Soars as Crypto Market Hits $4 Trillion
The company’s stock surged by about 21.52% in the last month, bringing MicroStrategy’s total valuation to over $118 billion.
MicroStrategy’s stock rally came amid a rise in the crypto market, with the total crypto market capitalization crossing the $4 trillion mark in July and Bitcoin hitting a new all-time high.
In December 2024, the Bitcoin treasury company entered the Nasdaq 100 stock market index as institutional demand for MicroStrategy’s stock grew.
Certain institutional investors desire exposure to Bitcoin, but they cannot directly hold it in their investment funds. These investors hold shares of Bitcoin treasury companies or purchase their corporate debt products as a proxy for holding BTC.
“There are trillions of dollars of managed capital, and some of that has strict mandates associated with it,” macroeconomist Lyn Alden wrote.
“Stock funds exist where the portfolio manager can only buy stocks. “He or she cannot buy bonds, ETFs, or commodities,” Alden gave as an example of the types of restrictions placed on asset managers.
Vanguard, one of the biggest institutional investment firms, has long opposed holding Bitcoin or offering Bitcoin directly to clients, but now they hold 20 million shares of MicroStrategy, or about 8% of the company’s outstanding stock.
The investment firm’s indirect exposure to Bitcoin through a publicly traded company highlights Bitcoin’s integration into traditional finance through legacy investment vehicles.
