Arkham revealed 87.5% of Strategy’s Bitcoin holdings

Arkham Intelligence extended its coverage of Strategy’s known wallets, making up to 87.5% of the holdings transparent. The posted addresses follow a recent refusal by Michael Saylor to reveal an on-chain proof of the company’s holdings. 

Arkham Intelligence has posted multiple wallets reportedly belonging to Strategy (MSTR). Previously, Arkham shared smaller holdings, but recently increased its efforts to track down the real on-chain portfolio of Strategy. 

The disclosures by Arkham of the public blockchain were seen as pressure for transparency. Even Michael Saylor stated he preferred the addresses to remain confidential.

There is still no consensus on the need for on-chain transparency. Security threats include dust addresses, which rely on a human mistake to transfer funds to the attacker’s wallet. Public addresses also invite transfers from small-scale projects, including prank NFT transactions. However, other BTC holdings have been transparent for years with no problems, especially the widely watched WBTC treasury.

The interactions and purchase style of Strategy may also be watched and affect the market, further swaying BTC prices. Dusting wallets may also link them to mixers or exploit addresses, making it more complex for the company to prove compliance. 

In general, crypto transactions are still unregulated, but there are attempts to declare the origin of coins and link them to identities where possible. 

Strategy also relies on the announcement effect, after buying BTC at market prices, but without disclosing each purchase. The ability of anyone to notice and track the purchases in real time may erase that effect for BTC and the MSTR stock price. Strategy has also mostly accumulated BTC with no signs of selling, which could be seen as a vote of no-confidence for the leading coin.

Arkham’s research reveals no purchases for days

Arkham Intelligence announced all addresses hold over 454.23 BTC. The latest purchase was from five days ago, originating from Coinbase Prime. 

The purchases may yet be completed through other wallets, as Arkham has not exhausted the search. New wallets can also be generated, or other forms of custody. 

Holding BTC in third-party custody is also seen as a potential risk, as the coins are exposed to the exchange or service levels of security.

Reportedly, Strategy uses mostly Coinbase Prime and Fidelity for its holdings. The Coinbase Prime funds can be segregated, but Fidelity mixes all coins and the exact share of Strategy remains uncertain. 

Based on Arkham’s report, Strategy holds over 327K BTC with Coinbase Prime, with up to 107K held in Fidelity wallets. 

On the other hand, Metaplanet has been entirely transparent with its holdings of 7,800 BTC. The Japanese company uses a self-custodial wallet to withdraw from exchanges. Other treasury holders also have known on-chain presence, with inflows from mining also reflected in their balances. 

Most corporate and other large-scale treasuries remain transparent, currently holding 3.37M BTC. The holdings are seen as a signal for long-term confidence and the use case of BTC as a reserve asset, especially after the addresses remain dormant with no selling.

Despite the data of slower purchases, Strategy marked the success of its STRK preferred shares. The asset climbed continuously to over $102, trading at a six-month peak. MSTR common shares fell toward $364.52, as BTC moved down from its peak to the $107,000 range.

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