Strategy’s Bold Bitcoin Bet: A Look into the Future
Michael Saylor, co-founder of Strategy, hinted that the corporate would dive back into its Bitcoin (BTC) buying spree starting Monday, following a temporary pause of their relentless accumulation of the cryptocurrency.
Back within the Game
On Sunday, Saylor shared, “Some weeks, you don’t just HODL.” This comes after Strategy took a break from its usual BTC purchasing activities last week, opting as a substitute to announce an enormous $4.2 billion capital raise. Prior to this pause, the corporate had impressively spent 12 straight weeks amassing Bitcoin.
Their most up-to-date acquisition was on June 30, when Strategy snapped up 4,980 BTC for a whopping $532 million. This brought their total Bitcoin cache to 597,325 BTC, valued at over $70.9 billion.
Strategy’s Bitcoin investment journey. Source: Strategy
Market Moves and Price Projections
Currently, Strategy’s shares are trading at around $434, marking a 16% increase this month. However, they’re still recovering from the height price of $543 per share reached in November 2024.
Interestingly, Bitcoin treasury corporations have grow to be significant players within the crypto market, acquiring BTC faster than it’s being mined. This rising demand may result in a supply crunch, potentially driving prices up. However, some experts caution that this debt-fueled institutional buying spree won’t be sustainable and will eventually result in a market downturn.
Bitcoin Treasury Companies: Outpacing the Miners
In the second quarter, Bitcoin treasury corporations collectively purchased 159,107 BTC, with Strategy leading the charge as the most important corporate holder, based on BitcoinTreasuries.
Total Bitcoin held by institutions. Source: BitcoinTreasuries
Right now, institutional treasuries hold about 3.5 million BTC. This group includes public corporations, private enterprises, crypto firms, government bodies, pension funds, and asset managers, all based on data from BitcoinTreasuries.
The Synthetic Halving Effect
In April, Adam Livingston, writer of “The Great Harvest: AI, Labor, and the Bitcoin Lifeline,” described how Strategy is basically “synthetically halving” Bitcoin by rapidly accumulating it.
Miners produce roughly 450 BTC every day, or about 13,500 BTC monthly. Yet, Strategy has managed to gather 379,800 BTC in only six months, based on Livingston.
The miner reserve metric is dropping. Source: CryptoQuant
Livingston noted, “Strategy has accumulated 379,800 BTC in the past 182 days—an average of 2,087 BTC per day—far outstripping the miners.” He even predicted that Strategy might grow to be the “financial superpower” of the longer term.
