Bitcoin (BTC) analyst Adam Livingston has highlighted the potential for a "synthetic halving" of Bitcoin if Strategy can continue purchasing half or more of the newly minted supply from miners every single month, according to his analysis in a recent blog post.
In his post titled ‘The Great Harvest: How MicroStrategy Is Synthetically Halving Bitcoin,’ Livingston noted that miners currently produce around 450 BTC per day or approximately 13,500 BTC per month. However, Strategy acquired 379,800 BTC in the last six months. This translates to the firm purchasing roughly 2,087 BTC per day — far in excess of daily miner output.
"This would indicate that MicroStrategy is buying up a portion of the BTC that’s already being mined each day, and perhaps even more than half of the new supply that miners add to the chain each month," the BTC Age author stated.
The author's prediction of a Bitcoin supply crunch translates into much higher BTC prices if Strategy can continue its pace of BTC acquisitions while market demand for the supply-capped digital asset grows among institutional and retail investors.
"BTC's global cost of capital will no longer be set by 'the market.' It will be set by the gravitational policies of the first Bitcoin superpower: MicroStrategy," Livingston added.
Institutions like Strategy are driving the world toward hyperbitcoinization
Cypherpunk and Blockstream CEO Adam Back predicted that Strategy and other institutions that have adopted a Bitcoin corporate treasury plan will drive the market capitalization of BTC to $200 trillion.
"MicroStrategy and other treasury companies are an arbitrage of the dislocation between the Bitcoin future and today's fiat world," Back wrote in an April 26 X post.
Critics of the company warn that the debt-based approach to BTC acquisition could sink Strategy financially if a prolonged BTC bear market takes effect and also warn of greater systemic risks to BTC from such a high concentration of the digital currency held by a single entity.
However, Bitcoin advocate and author Saifedean Ammous recently said that Strategy's concentration of BTC doesn't threaten the protocol.
Ammous argued that institutions like BlackRock and Strategy holding high concentrations of BTC could not engineer a hard fork increasing Bitcoin's maximum supply, as it would massively devalue their holdings, which, at the end of the day, belong to shareholders with the power to divest.
