Coinbase Institutional published an analysis on April 17, 2024, indicating that MicroStrategy's continuous Bitcoin (BTC) purchases are causing the amount of Bitcoin in circulation to decrease much more sharply than people realize.
Michael Saylor also supported this view the following day, posting on Twitter that "Bitcoin cannot be stopped."
Companies holding digital assets reduce the circulating supply of BTC .
A Coinbase report indicates that the percentage of BTC supply held by digital asset treasury companies has quadrupled in the past two years, surpassing the 4% mark.
MicroStrategy alone currently holds 780,897 BTC , making it the world's largest Bitcoin holder to date.
This supply-shrinking effect is amplified as long-term investors accumulate more coins and more continue to leave exchanges. MicroStrategy's buying activity is typically most significant when it contributes to a breakout at a key technical level.
At that point, breakout traders, automated investment funds, and trend-following trading bots will further amplify this upward wave.
However, Coinbase also noted that the impact on price may be limited by factors such as anticipated buying, ETF inflows, Miners supply, and hedging activity in the Derivative market – all of which could diminish MicroStrategy's influence in the short term.
Saylor emphasized the uncontrollable design of Bitcoin.
Saylor's post further underscores his long-held view that Bitcoin's decentralized structure renders any attempts at control futile.
The timing of the article also reinforces the view that treasury companies are accelerating efforts to make Bitcoin increasingly stable and beyond the control of any single government.
MicroStrategy has expressed its intention to continue buying BTC quarterly with no time limit. The company stated that the yield on BTC so far in 2026 has reached 5.6%.
Treasury companies' purchases may have a greater impact by tightening supply or creating momentum for breakouts – this will depend on Bitcoin's current position in the market cycle.
