This Could Create Artificial Scarcity and Trigger Growth to $200K

MicroStrategy, led by Michael Saylor, has reached unprecedented rates of Bitcoin accumulation, acquiring the cryptocurrency at a rate of about $2 billion monthly since November 2024. This figure is 9 times higher than the purchase volumes for any previous year, effectively creating a monthly “synthetic halving event” as the company buys more bitcoins than are being mined. With this accumulation pace, MicroStrategy has already gathered more than 550,000 BTC in its portfolio, setting a new standard for institutional demand that could trigger a sustainable shortage in the market and catalyze Bitcoin price growth to $200,000 and beyond.

Unprecedented Accumulation Strategy

According to the presented charts, MicroStrategy dramatically changed its Bitcoin acquisition strategy starting in November 2024. While previously the company purchased cryptocurrency in relatively uniform batches, the last five months demonstrate an exponential growth in purchase volumes.

“Something clicked in the markets in November 2024,” analysts note, observing the chart of MicroStrategy’s half-yearly Bitcoin acquisitions. The diagram clearly shows that the volumes of purchases in the second half of 2024 and early 2025 have no historical precedents.

For context: before 2024, the maximum amount the company spent on Bitcoin acquisition in an entire year was $2.6 billion. Now, MicroStrategy invests a comparable sum monthly, indicating a radical change in strategy and scale of operations.

Looking at the cumulative chart, one can see how the acquisition curve literally soars upward in the last two quarters. This indicates not only an increase in accumulation rates but also a qualitative change in the company’s approach to investing in Bitcoin.

From Corporate Treasury Strategy to Central Bank Approach

Initially, when MicroStrategy began buying Bitcoin in 2020, it was positioned as a treasury strategy—an alternative to holding cash reserves in US dollars. Michael Saylor, the company’s CEO, repeatedly explained that he sees Bitcoin as protection against inflation and devaluation of fiat currencies.

However, the current scale of acquisitions goes far beyond simple corporate balance sheet hedging. Essentially, MicroStrategy now operates in a logic more reminiscent of central banks forming gold and foreign exchange reserves.

“What MicroStrategy is doing now fundamentally changes the paradigm of corporate investments in cryptocurrencies,” comments Alex Tapscott, an analyst at RBC Capital Markets. “We’re observing a transition from tactical placement of a portion of corporate reserves in Bitcoin to strategic accumulation of a digital asset on a scale comparable to sovereign fund operations.”

Indeed, if we compare MicroStrategy’s Bitcoin holdings (over 550,000 BTC) with the gold reserves of some countries, the company already surpasses many states in terms of asset value. At current prices, MicroStrategy’s portfolio is valued at approximately $57 billion, comparable to the gold reserves of countries like India or the Netherlands.

Creating Synthetic Scarcity

A particularly important aspect of MicroStrategy’s strategy is that the company is effectively creating a “synthetic halving” every month.

To understand the scale: with the current block reward of 3.125 BTC, miners produce about 13,500 new bitcoins per month. At a price of around $100,000 per BTC, this is equivalent to approximately $1.35 billion per month. MicroStrategy, by buying bitcoins worth $2 billion monthly, not only absorbs all new issuance but also creates additional buying pressure in the secondary market.

“This is an unprecedented situation,” explains Willy Woo, crypto analyst and creator of the Woobull platform. “One public company is effectively buying more bitcoins than are being mined across the entire network. This can create a sustainable structural deficit, especially considering that MicroStrategy follows a strict ‘buy-and-hold’ strategy with no intention to sell.”

Traditionally, halving (the reduction of miner rewards by half), occurring approximately every four years, is viewed as a catalyst for Bitcoin price growth due to the reduced rate of new coins entering the market. MicroStrategy’s strategy effectively enhances this effect, artificially reducing available supply.

Potential Implications for the Bitcoin Market

Experts note that MicroStrategy’s aggressive accumulation strategy could have serious implications for the entire Bitcoin market.

First, it could trigger a “contagion effect” among other public companies. Seeing MicroStrategy’s success and the growth in its stock value amid increasing Bitcoin reserves, other corporations may follow this example, further intensifying buying pressure.

Second, the constant supply deficit in the spot market could lead to exponential price growth with any increase in retail or institutional demand.

“We may be observing the beginning of a perfect storm for Bitcoin price growth,” believes Lex Moskovski, CEO of Moskovski Capital. “On one hand, supply is shrinking both due to natural halving and MicroStrategy’s strategy. On the other hand, we see growing interest from ETFs, other corporations, and private investors. In such a situation, movement toward $200,000 and higher looks not just possible but practically inevitable.”

It is precisely this dynamic of supply and demand that has historically led to parabolic growth in Bitcoin’s price in previous cycles. However, the current situation is unique in that, for the first time, the reduction in available supply is occurring not only due to Bitcoin’s protocol features but also due to the deliberate strategy of a major institutional player.

The New Norm of Institutional Ownership

MicroStrategy’s strategy may signal a fundamental shift in how institutional investors perceive Bitcoin. If previously public companies viewed cryptocurrency as an experimental asset class with limited allocation, now we are observing a transition to a “buy-and-hold” model on a scale comparable to central banks.

“This is the new norm of Bitcoin ownership for institutional investors,” notes Raoul Pal, CEO of Real Vision. “MicroStrategy demonstrates that Bitcoin is no longer a speculative bet or inflation hedge. It’s a strategic asset that companies can accumulate in significant volumes as part of a long-term financial strategy.”

This approach is fundamentally different from the traditional perception of corporate treasury operations, where liquidity and short-term volatility are usually key considerations. MicroStrategy clearly focuses on a multi-year perspective, ignoring short-term market fluctuations.

If this model is adopted by other public companies, we may see the formation of a new class of institutional Bitcoin holders, whose aggregate purchasing power could far exceed the capabilities of retail investors or even existing cryptocurrency funds.

In such a scenario, the question is no longer whether Bitcoin will reach new highs, but how high its price can rise with a sustainable structural supply deficit and growing institutional demand.