Strategy’s BTC Buying Mimics Bitcoin Halving Effect on Market

How Strategy’s BTC Accumulation Mirrors Bitcoin Halving Impact

Author and analyst Adam Livingston, who wrote "The Bitcoin Age and The Great Harvest," believes Strategy’s rapid BTC accumulation is acting like a "synthetic halving." In Crypto, a "halving" happens every four years, cutting the amount of new BTC mined in half. But Livingston says Strategy is creating a similar effect simply by buying up so much currency that there’s hardly any left for others. It signals synthetic halving of the coin. 

How Much Bitcoin is Strategy Buying?

Right now, Bitcoin miners produce about 450 new BTC every day, which adds up to around 13,500 BTC a month. But Saylor’s Strategy is buying even more than that, about 2,087 BTC per day over the last six months, according to Livingston. In total, they've collected around 379,800 BTC in just half a year, that's why experts state the activity as synthetic halving. As of 21 April 2025, the organisation holds about 538,200 coins. 

This huge amount of buying means that new supply is getting locked up faster than it’s being made. Livingston warns that soon, people might have to pay a premium just to get their hands on the coin. Borrowing this currency could become extremely expensive and might only be something big companies and even countries can afford.

Livingston said, “If Bitcoin becomes this scarce, people will have to pay a premium to acquire it”, as a consequence of halving effect. "The cost of capital for this currency won’t be set by the market anymore — it will be decided by MicroStrategy's policies."

Higher Prices Ahead?

If this organisation keeps buying at this pace and if demand from investors keeps rising, the prices could soar much higher, Livingston added. With the coin supply capped forever at 21 million, and a big chunk of it already in the company's hands, basic supply and demand rules suggest that prices could climb fast. The currency is currently trading at $94.464.58. 

Other crypto experts agree. Adam Back, CEO of Blockstream and an early supporter of this particular coin, believes this trend could push coin’s total market value to $200 trillion. He said companies like Strategy are taking advantage of the gap between currency's bright future and today’s fiat money system.

Risks and Criticism

Not everyone is cheering the organisation's crypto approach, though. Some critics say that because the company borrowed heavily to buy this cryptocurrency, it could crash hard if the prices fall for a long time. Others are concerned that if one organisation holds a huge amount of BTC, it could bring risk for the whole community. 

Conversely, Economist and crypto author Saifedean Ammous says there’s nothing to fear. He explained that even if MicroStrategy or other big players like BlackRock and Semler Scientific hold a lot of Bitcoin, they can’t change the rules, like increasing the total supply. Doing so would make their own holdings worth less, and shareholders wouldn’t allow it.

Final Thoughts 

The company's bold move to buy up the digital asset is shaking things up in the crypto world. Whether it leads to a new golden age for Bitcoin or causes new risks, one thing is clear: Bitcoin’s future is being rewritten right now.