Eli Nagar, CEO of Bitcoin mining pool Braiins Mining, posted a compelling observation on social media platform X, emphasizing the scale of MicroStrategy's Bitcoin
Bitcoin mining pool Braiins Mining CEO Eli Nagar recently highlighted a notable statistic on social media platform X, showcasing the magnitude of MicroStrategy’s BTC holdings. According to Nagar, the company’s stash of 444,262 BTC surpasses the amount of Bitcoin expected to be mined in the next halving epoch, which is projected at 328,125 BTC.
Here's a closer look at this interesting comparison.
Bitcoin halving, a key aspect of the cryptocurrency's protocol, occurs roughly every four years or every 210,000 blocks mined. During each halving, the reward for mining a Bitcoin block is reduced by 50%, slowing the creation of new Bitcoins and increasing its scarcity.
The current halving epoch began on April 20, 2024, reducing the block reward from 6.25 BTC to 3.125 BTC per block. This epoch will continue until around March or April 2028, when the next halving will occur, reducing the reward to 1.5625 BTC per block. At that rate, miners are expected to mine 328,125 BTC (calculated as 210,000 blocks multiplied by 1.5625 BTC per block) over the course of this future epoch. This reduction aligns with Bitcoin's protocol, which gradually reduces the supply growth until the total supply of 21 million BTC is reached.
Now, let's shift our focus to MicroStrategy (Nasdaq: MSTR), a company that was once primarily known for its business intelligence software but has now become a prominent player in corporate Bitcoin adoption. On August 11, 2020, the company announced its first Bitcoin purchase, setting the stage for the cryptocurrency to become a key treasury reserve asset. This bold move marked the beginning of an aggressive accumulation strategy spearheaded by then-CEO Michael Saylor (who currently serves as the executive chairman of the company).
As of December 22, 2024, MicroStrategy holds an impressive 444,262 BTC, which were acquired for approximately $27.7 billion at an average price of $62,257 per Bitcoin. The company's latest acquisition, announced on December 23, 2024, involved purchasing 5,262 BTC for $561 million at an average price of $106,662 per Bitcoin.
When comparing MicroStrategy's Bitcoin reserves to the next halving epoch's projected output, as highlighted by Eli Nagar, we gain a unique perspective. The company's holdings are greater than the 328,125 BTC anticipated to be mined between 2028 and 2032. This dynamic underscores the impact of institutional players like MicroStrategy in the Bitcoin ecosystem and the scarcity-driven economics of the cryptocurrency.