Executive Summary
The Story So Far
Why This Matters
Who Thinks What?
MicroStrategy continued its aggressive Bitcoin acquisition strategy in September, purchasing 7,378 BTC valued at over $837 million, despite a general slowdown in its monthly buys. This activity occurred as the total stablecoin market capitalization surpassed $295 billion and the number of crypto millionaires reached a record 241,700 globally, signaling ongoing institutional adoption and market growth.
MicroStrategy’s Bitcoin Accumulation
The software company, led by Michael Saylor, acquired 7,378 BTC for $837.5 million this month, at an average price of $113,520 per Bitcoin. This brings MicroStrategy’s total Bitcoin purchases to 80. While substantial, this represents a decrease from August’s 7,714 BTC and July’s 31,466 BTC.
Saylor commented that Bitcoin is currently in a “boring” growth stage, which he believes makes it an attractive entry point for institutions seeking less volatile prices before potential future gains.
Stablecoin Market Surges Past $295 Billion
The total stablecoin market capitalization exceeded $295 billion in September, following several months of consistent expansion, including a nearly $5 billion increase in the week ending September 26. Regulatory bodies are beginning to provide clarity for these digital assets.
In the United States, the Commodity Futures Trading Commission (CFTC) is exploring the use of tokenized assets, including stablecoins, as collateral in derivatives markets. Australia’s Securities and Investments Commission (ASIC) has also introduced a licensing exemption for intermediaries distributing stablecoins.
Conversely, some European jurisdictions express caution. A senior official from the Bank of Italy recently stated that stablecoins issued by multiple entities across different countries could pose risks to the European Union’s financial system.
Record High for Crypto Millionaires
The global number of crypto millionaires has reached an unprecedented 241,700, marking a 40% year-on-year increase. This is according to the Crypto Wealth Report by Henley & Partners, a wealth and citizenship advisory firm.
The report also noted a 38% rise in crypto centimillionaires (those with over $100 million in crypto assets) to 450, and a 29% increase in crypto billionaires, now totaling 36. This growth is largely attributed to a “watershed year for institutional adoption.”
Bitcoin ETFs See Inflows Amid Regulatory Shifts
Bitcoin exchange-traded funds (ETFs) recorded $241 million in inflows during September, while Ether (ETH) ETFs experienced net outflows of $73 million. This resulted in total crypto net inflows of $167.8 million for the month.
For some issuers, these financial instruments have proven highly profitable. BlackRock’s crypto ETFs alone have generated approximately $260 million in revenue in under two years, comprising $218 million from Bitcoin ETFs and $42 million from Ether products.
US States Advance Crypto Legislation
Amidst growing crypto adoption, individual U.S. states are proactively developing regulatory frameworks. Crypto bills advanced in five states in September, with Wisconsin introducing a significant piece of legislation.
Wisconsin lawmakers introduced a bill that would exempt data centers from sales and use tax, with the notable exception of those used for cryptocurrency mining. This Republican-sponsored bill aims to amend a previous July law supporting data center development, but critics have raised concerns over the environmental impact of planned crypto-related data centers.
EU Member States Oppose Chat Control Law
Seven European Union member states now oppose the proposed Chat Control law, which aims to screen encrypted messages before transmission. Support for the measure has dropped from 15 to 12 member states since the beginning of the month, according to Fight Chat Control.
The controversial law, reintroduced by Denmark in July, could effectively compromise the security of encrypted messaging services like WhatsApp and Signal within the EU.
Market Dynamics in September
September’s cryptocurrency landscape was characterized by MicroStrategy’s continued strategic Bitcoin accumulation, a significant surge in stablecoin market capitalization, and a record increase in crypto millionaires. These trends, alongside evolving regulatory actions in the U.S. and E.U., underscore a period of dynamic growth and increasing institutional engagement within the digital asset space.
