“We are announcing a strategic goal of raising $42 billion of capital over the next 3 years, comprised of $21 billion of equity and $21 billion of fixed income securities, which we refer to as our “21/21 Plan.” As a Bitcoin Treasury Company, we plan to use the additional capital to buy more bitcoin as a treasury reserve asset in a manner that will allow us to achieve higher BTC Yield.”
source
If MicroStrategy actually does this—gets its hands on $42 billion in capital—it could buy up about 500,000 BTC. That's like scooping up nearly an entire year’s worth of freshly mined BTC at current prices.
Then there's the fact that combined, all ETFs have roughly 1 million BTC in their custody, with BlackRock alone holding around 420,000 BTC. Despite the seven-month consolidation in BTC, BlackRock hasn’t stopped accumulating. BlackRock is a giant in assets under management (AUM), and they’ve only been in crypto for, what, 10 months? Imagine the impact this will have on the crypto world over the next decade.
Now, if ETFs and MicroStrategy combined secure 2 million BTC within the next year, that means 10% of all Bitcoin that will ever exist will be in institutional hands. And when you factor in lost BTC, by this time next year, institutions might already own over 10% of the total 21 million BTC supply.
There will never be more than 21 million BTC. Let that sink in for a second. Remember the vision we had for crypto just a few years ago? Sure, institutions are boosting our bags—whether you hold BTC or alts—but they’re also getting their hands on the one asset meant to revolutionize the financial system.
BTC isn’t for everyone anymore unless we start thinking in satoshis. Soon enough, whole coiners will be a rarity among retail holders. Bitcoin custody is centralizing fast, and there’s nothing we can do about it. We wanted these players in the game, didn’t we?
Well, now they’re here, and just as they hoarded gold decades ago while handing the masses paper notes in return, they’re tricking us into trading BTC for stablecoins pegged to fiat. Stablecoins are even easier to mint than dollars, practically print-on-demand.
Crypto Twitter’s pretty cautious about this bull market, but something tells me it’s going to be intense—more aggressive than people think. No supercycle hype from me, though.
When euphoria kicks in and portfolios explode, it’s time to sell, because a bear market is always just around the corner. Some might say selling crypto after all my talk against centralization doesn’t add up, but hey, I’m no BlackRock. I need profits on the table going into the next bear market.
I’ve done this two bull cycles in a row without cashing out, and it’s painful as hell. Don’t underestimate this market, but don’t get cocky either. The bubble will pop eventually, only to set the stage for the next cycle. Have a great one, and see you next time.
Thanks for your attention,
Adrian