MicroStrategy Closes Gap with BlackRock in Race to 1M Bitcoin

Key Insights:

• The latest Bitcoin acquisition by MicroStrategy narrows the gap with BlackRock.
• Strategy’s average cost basis briefly turns positive as Bitcoin rallied to $76,000.
• MicroStrategy’s BPS gained by 3% in the first half of March.

MicroStrategy is back in the spotlight this week, mostly because of its latest Bitcoin purchase. The company acquired 23,134 BTC on 16 March, making it its largest single-day purchase this year.

While this latest MicroStrategy Bitcoin acquisition was noteworthy, it pushed the company closer to the 1 million Bitcoin mark. Also, it narrowed the gap in holdings compared to its main rival, BlackRock.

BlackRock has been leading the charge in BTC holdings, while MicroStrategy has been trailing. The gap between the two companies was substantial at the start of 2025. However, it has gradually narrowed, especially since late last year.

MicroStrategy now holds 761,068 BTC, courtesy of its aggressive accumulation pace.

MicroStrategy BTC holdings | Source: Bitbo.io

Meanwhile, BlackRock Bitcoin holdings stood at 782,179 at press time. It also exhibited some accumulation since February. Interestingly, BlackRock now holds less Bitcoin than it held at its peak amount in October last year. Its historic holdings pushed slightly above 805,000.

BlackRock Bitcoin holdings | Source: Bitbo.io

BlackRock currently holds 21,111 more BTC than MicroStrategy. For context, at its peak, BlackRock held over 160,000 BTC. This gap narrowed drastically over the last few months because BlackRock sold off a substantial amount.  Moreover, MicroStrategy maintained a steady streak of inflows.

MicroStrategy Average Cost Basis Briefly Surpasses Bitcoin Price

Bitcoin’s steady bullish momentum pushed the price as high as $76,000 on Tuesday morning. This price tag was exciting for MicroStrategy investors because it briefly pushed the company’s Bitcoin cost basis above the market price.

The BTC reserve firm currently has an average cost of $75,646. Interestingly, Strategy’s average cost basis cooled substantially in the last few weeks and months.

The company’s average cost basis previously surged to $123,561 on 13 October. This was because the company was still buying BTC aggressively while the price was near its historic highs. This latest decline in the average cost of acquisition reflects the sustained demand for Bitcoin even as the cryptocurrency retreated over the last few months.

The average cost basis is the easiest way to assess whether Strategy holdings are breaking even, in profit, or at a loss. It also confirms that the company is taking advantage of recently discounted prices. The firm has accelerated its pace of accumulation.

MicroStrategy’s Bitcoin Per Share (BPS) Climbs to 3%

The company’s holdings have also seen significant improvement when measured on a per-share basis. MicroStrategy recently revealed that its BPS surged to 3% in the last 2 weeks.

MicroStrategy’s Bitcoin yield per share | Source: MicroStrategy

For context, its BPS hovered at 0.1% in February and $0.3% in December. According to the company, this growth indicated rising demand for STRC. The latter is MicroStrategy’s perpetual preferred stock, which offers a variable dividend rate close to $100.

The company uses the STRC stock to raise funds from dividend-seeking investors. The rising BPS has led this class of investors to seek dividend exposure to Bitcoin. It also signaled rising confidence in the company’s long-term strategy.

In summary, MicroStrategy will likely overtake BlackRock in terms of holdings if it maintains the steady Bitcoin accumulation pace. Moreover, the market’s latest crash offered analysts, investors, and critics a chance to observe how it would affect the company.

MicroStrategy has so far demonstrated a firm foundation in its conviction and the mechanics of its operations.

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