Strategy Is Buying Bitcoin Faster Than It’s Mined

This rapid accumulation is placing deflationary pressure on Bitcoin’s already fixed supply and reinforcing the narrative of Bitcoin as a scarce, high-value asset.

Ju shared a post on X (formerly Twitter) on May 10th, saying:

“Their 555,000 BTC is illiquid with no plans to sell. Strategy’s holdings alone result in a -2.23% annual deflation rate, and that could be even higher when considering other long-term institutional holders.”

 

Michael Saylor’s Vision: Making Bitcoin A Corporate Treasury Standard

Michael Saylor has long been a vocal proponent of Bitcoin, advocating for its adoption as a treasury reserve asset. His company, Strategy, continues to lead the charge in institutional Bitcoin investment by actively acquiring BTC and encouraging other corporations to follow suit.

Saylor’s influence is evident, as over 13,000 institutional investors now hold Strategy stock (MSTR), effectively gaining indirect exposure to Bitcoin through traditional financial markets.

What sets Strategy apart from other institutional investors is its unique role in connecting the Bitcoin ecosystem with traditional finance. The company raises funds by issuing corporate debt and equity, then channels that capital into Bitcoin purchases.

This approach has allowed Strategy to serve as a major on-ramp for TradFi investors seeking exposure to BTC.

Bitcoin Supply Shrinking As Strategy Outpaces Miners

Data shows that Strategy is currently acquiring approximately 2,087 BTC per day, while the total daily miner output sits around 450 BTC. This means Strategy is buying over four times the amount of newly mined Bitcoin each day.

Source: CryptoQuant

Author Adam Livingston, in his book The Bitcoin Age and The Great Harvest, describes Strategy’s behavior as “synthetically halving” the supply of Bitcoin. Just as block reward halvings reduce supply, so too does a major player like Strategy absorbing more than the available new coins.

Livingston noted:

“They’re essentially accelerating Bitcoin’s scarcity curve.”

 

Institutional Players Follow Suit, Deepening Market Impact

Strategy’s aggressive strategy has set a precedent. Hedge funds, asset managers, pension funds, and tech firms are increasingly turning to Bitcoin as a hedge against inflation and currency debasement.

More interestingly however, these investors now see Bitcoin not just as a speculative asset, but as a store of value, much like digital gold.

Source: CryptoQuant

The launch of Bitcoin ETFs has also brought fresh capital from traditional markets into the crypto space. These funds enable retail and institutional investors to gain Bitcoin exposure without directly holding BTC, increasing liquidity and reducing volatility.

ETF inflows have similarly played a key role in smoothing Bitcoin price swings, making downturns less severe and creating a more stable investment environment.

Regulatory Clarity Will Unlock Sovereign Wealth Fund Investments

While institutional demand is rising, sovereign wealth funds, which are among the largest institutional investors globally, remain cautious. According to SkyBridge Capital founder Anthony Scaramucci, these players are waiting on clear regulatory guidance from U.S. lawmakers before committing large-scale capital to Bitcoin.

In Anthony’s own words:

“Once comprehensive crypto regulations are in place in the United States, sovereign wealth funds will move quickly to accumulate Bitcoin.”

This potential wave of sovereign investment could significantly increase Bitcoin’s market cap, pushing prices to new highs and further legitimizing BTC as a global asset class.

Strategy’s Impact On Bitcoin Supply & Adoption

Strategy’s rapid accumulation of Bitcoin is having a profound impact on market dynamics. By buying more than the daily miner supply, the firm is contributing to a deflationary environment that strengthens Bitcoin’s value proposition.

Combined with growing institutional interest, regulatory momentum, and increasing ETF inflows, Bitcoin’s long-term outlook appears bullish, driven in part by firms like Strategy leading the way.