MicroStrategy is a US-based business intelligence firm and the largest institutional holder of Bitcoin. The company has faced significant headwinds in recent months, especially with the crypto market tanking during the 2022 bear run. Fortunately, 2023 seems to be off to a good start for MicroStrategy.

The company recently repaid a $205 million loan to the now-bankrupt Silvergate bank. Additionally, it also added 6,455 BTC to its Bitcoin tally over the last few weeks. However, despite this massive addition, the software giant is still not the largest holder of Bitcoin. And it would surprise you to find out which entity currently holds the most BTC. Intrigued? Tag along to know more.

MicroStrategy repays loan, adds to Bitcoin holdings

After multiple impairment losses on the back of the bitter crypto winter, MicroStrategy is finally back to its old ways. According to a March 27 tweet from co-founder, Michael Saylor, the company repaid its $205 million loan to the beleaguered Silvergate Bank.

Additionally, Saylor also disclosed that the company had purchased approximately 6,455 more BTC between Feb 16 and March 23 this year. According to the tweet, the company acquired the latest batch of BTC for roughly $150 million at an average price of $23,238 per bitcoin. After its recent BTC shopping spree, MicroStrategy currently holds approximately 138,955 BTC. This holding is worth more than $4.14 billion and has been acquired at an average cost of $29,817 per bitcoin, according to Saylor’s tweet.

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The largest holder of Bitcoin is the US Government

Yes, that’s right. Despite the massive addition of BTC, MicroStrategy still isn’t the largest holder of Bitcoin. That title belongs to the US Government, which is currently in possession of more than 205,000 BTC. This massive Bitcoin stockpile is worth more than $5.17 billion at current prices and represents nearly one percent of the coin’s total circulating supply.

Most of these holdings consist of confiscated Bitcoins seized in separate events over the years. For instance, in 2016, US authorities seized 94,636 BTC linked to the hack of the Bitfinex crypto exchange. This was the largest seizure of Bitcoin to date, with the confiscated coins valued at around $4 billion at the time.

A few years later, US authorities captured nearly 70,000 BTC from a miscreant known only as “Individual X.” The seized loot was part of a Silk Road exploit, which Individual X agreed to forfeit. In another case tied to the Silk Road, US authorities confiscated 50,000 BTC from a man named James Zhong, who had illegally gained these tokens from the dark web marketplace.

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The US Government’s BTC holding would be much larger. However, authorities have auctioned off or sold a large amount of BTC over the years. For instance, in 2014, popular Bitcoin proponent Tim Draper purchased nearly 30,000 BTC in one of these auctions.

More recently, in March this year, US authorities transferred nearly 10,000 BTC to a wallet owned by Coinbase, presumably to be sold on the open market. This latest batch of offloaded BTC is believed to be part of the loot confiscated from the Silk Road exploit. The transfer even sent markets into a tizzy, with Bitcoin dropping two percent after this development. However, despite the offloading, the US government still held more BTC than MicroStrategy and Tesla (the second-largest institutional holder of Bitcoin) combined.

Conclusion

In Aug 2022, Michael Saylor said that MicroStrategy would never sell its BTC. More recently, Saylor said the company would continue to trade BTC, despite multiple impairment losses in 2022. The company’s recent decision to purchase 6,455 BTC is a testament to these statements. However, both MicroStrategy and the US government have huge responsibilities now. They are massive Bitcoin whales and any movement of coins could result in market disturbances.

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