Strategy, a Bitcoin (BTC) treasury company, is accumulating Bitcoin at a faster rate than total miner output

Strategy, a Bitcoin (BTC) treasury company, is accumulating Bitcoin at a faster rate than total miner output, giving the supply-capped asset a -2.33% annual deflation rate

Ki Young Ju, the CEO of CryptoQuant and a market analyst, highlighted that Strategy is accumulating Bitcoin at a faster rate than the total miner output, giving the limited-supply asset a -2.33% annual deflation rate.

"Their 555,000 BTC is illiquid with no plans to sell. Means a -2.23% annual deflation rate. Likely higher with other stable institutional holders," the analyst stated in an X post on May 10.

Illiquid 555,000 BTC in Strategy's treasury.

Their 555,000 BTC is illiquid with no plans to sell.

Means a -2.23% annual deflation rate.

Likely higher with other stable institutional holders. BTC is an illiquid asset with limited-supply.

The good old days when BTC was -2.33% deflating per year.https://t.co/V733jM8R8c

— Ki Young Ju (@hash_triple_a) May 10, 2024

Earlier this year, Young Ju pointed out that Strategy's Bitcoin holdings are greater in value than the total market cap of 90% of the cryptocurrencies listed on CoinMarketCap.

"Only 6 crypto assets have a larger market cap than illiquid 555,000 BTC in Strategy's treasury. Most of the crypto assets in CoinMarketCap have a smaller market cap than Strategy's BTC holdings," the analyst stated in a January X post.

Only 6 crypto assets have a larger market cap than illiquid 555,000 BTC in Strategy's treasury.

Most of the crypto assets in CoinMarketCap have a smaller market cap than Strategy's BTC holdings.

It's not surprising that major institutions prefer BTC over altcoins.https://t.co/81G3Z5p79c

— Ki Young Ju (@hash_triple_a) January 1, 2024

Strategy and corporate institutions change the Bitcoin market dynamic

Adam Livingston, the author of "The Bitcoin Age and The Great Harvest," recently said that Strategy is synthetically halving Bitcoin by outpacing miner supply through high demand.

According to the author, the current collective daily miner output is approximately 450 BTC, while Strategy accumulates an average of 2,087 BTC per day — over 4 times the daily miner production.

Other institutions including hedge funds, pension funds, asset managers, and tech companies continue buying BTC as a portfolio diversifier or a treasury asset to hedge against fiat currency inflation.

ETFs inflow has also helped to stabilize Bitcoin's price by injecting fresh capital from traditional financial markets, smoothing out the volatility of Bitcoin and making downturn less severe.

However, the most august institutional players — sovereign wealth funds — will not ramp up Bitcoin purchases until clear cryptocurrency regulations are established in the United States, according to SkyBridge founder Anthony Scaramucci.

Once a comprehensive regulatory framework emerges in the US, it will trigger large blocks of Bitcoin purchases by sovereign wealth funds, increasing Bitcoin's price, Scaramucci added.