The pace at which Michael Saylor’s firm, Strategy, is acquiring Bitcoin surpasses the rate at which miners produce new coins. This observation was made by CryptoQuant CEO Ki Young Ju.
#Bitcoin is deflationary.@Strategy is buying BTC faster than it’s mined. Their 555K BTC is illiquid with no plans to sell. MSTR’s holdings alone mean a -2.23% annual deflation rate—likely higher with other stable institutional holders. pic.twitter.com/9VKT3IdcYo
— Ki Young Ju (@ki_young_ju) May 10, 2025
“Their 555,000 BTC is illiquid, with no plans to sell. MSTR’s holdings alone imply an annual deflation of 2.23%. Considering other stable institutional holders, it’s likely even higher,” the expert noted.
As of May 4, 2025, the firm held 555,450 BTC. The year-to-date return was 14%.
According to the quarterly report, Strategy’s revenue decreased by 3.6% year-on-year to $111.1 million. The net loss amounted to $4.2 billion.
The firm’s operating expenses in the first quarter surged nearly 2000% year-on-year to $6 billion, primarily due to an unrealized loss on Bitcoin ($5.9 billion).
Earlier, analysts at Bernstein predicted that by 2029, corporations will increase their digital gold holdings to $330 billion, with Strategy remaining a leader in acquisitions.