The newly mined supply of Bitcoin is being effectively constrained by the company’s rapid accumulation, it is argued by author Adam Livingston.
Adam Livingston, a BTC analyst and author of The Bitcoin Age and The Great Harvest, describes Michael Saylor’s strategy as “synthetically halving Bitcoin” by consistently purchasing half or more of the newly minted supply from miners each month.
Livingston stated that miners currently produce around 450 BTC per day, or approximately 13,500 BTC each month, while Strategy has acquired 379,800 BTC over the past six months. This means the firm purchases roughly 2,087 BTC per day—significantly surpassing the daily output from miners. He further added:
When Bitcoin becomes this scarce, access to Bitcoin will require paying a premium. Lending against Bitcoin will cost more. Borrowing Bitcoin will become a luxury business reserved for nation-states and corporate whales, and Strategy will control the bottleneck.
Livingston further explained that Strategy, the first Bitcoin superpower, will influence the global cost of capital for BTC instead of “the market.”
The author predicts a Bitcoin supply crunch and suggests that BTC prices could rise significantly if Strategy maintains its pace of BTC acquisitions while institutional and retail investors continue to grow demand for the supply-limited digital asset.
The author predicted a Bitcoin supply crunch, suggesting that BTC prices could rise much higher if Strategy maintains its pace of acquisitions while institutional and retail investors increase demand for the supply-capped digital asset.
Institutions Like Strategy Accelerate the Path to Hyperbitcoinization
Cypherpunk and Blockstream CEO Adam Back predicted that Strategy, along with other institutions implementing a Bitcoin corporate treasury strategy, will drive BTC’s market capitalization to $200 trillion.
Back wrote in an April 26 X post that “Strategy and other treasury companies represent an arbitrage of the dislocation between Bitcoin’s future and today’s fiat world.”
Critics have warned that Strategy’s debt-driven strategy for acquiring BTC could financially endanger the company if a prolonged BTC bear market occurs. They have also raised concerns about greater systemic risks to BTC resulting from a single entity controlling such a high concentration of the digital asset.
However, Bitcoin advocate and author Saifedean Ammous recently stated that Strategy’s concentration of BTC does not threaten the protocol.
Ammous argued that institutions like BlackRock and Strategy, despite holding large concentrations of BTC, cannot engineer a hard fork to increase Bitcoin’s maximum supply because doing so would significantly devalue their holdings—assets that ultimately belong to shareholders with the authority to divest.
