Bitcoin Mining Can’t Keep Up: Companies Buying At Quadruple Pace – Report

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In a plot twist that no one saw coming, companies and funds are now buying Bitcoin at a pace so fast, it could make your head spin. According to some data from a little place called River, the rate at which Bitcoin is being gobbled up far exceeds the new supply from miners. If this trend continues, Bitcoin could be as scarce as a unicorn at a petting zoo, leaving liquidity in the hands of a few big buyers. 🦄

Institutions: The New Bitcoin Hoarders

It turns out that publicly traded bitcoin treasury firms and private businesses are buying a whopping 1,755 BTC per day on average in 2025. That’s a lot of digital coins, folks. Meanwhile, exchange-traded funds and other investment vehicles have joined the party, snapping up about 1,430 BTC a day. It’s like the Bitcoin buffet, and they’re going back for seconds. 🍽️

A Supply Shock? More Like a Supply “What-Just-Happened?”

Miners are doing their best to keep up, but their output is steady while the demand is skyrocketing. When demand outpaces supply by such a large margin, the market dynamics start to look like a chaotic game of musical chairs – but this time, there might be no chairs left. The big question on everyone’s lips: Will we see a supply shock? Analysts are betting on it, especially if the reserves on exchanges keep shrinking while institutions hold their coins hostage. 😱

Some folks are convinced that this imbalance will send Bitcoin prices into the stratosphere. Others are less optimistic, warning that the lack of liquidity on exchanges could lead to some wild, rollercoaster-like price swings when the market inevitably corrects. 🚀

Businesses are absorbing bitcoin at 4x the rate it is mined.

– River (@River) August 27, 2025

Who Is Buying And How Much? The Plot Thickens

Here’s a fun fact: Bitcoin treasury companies alone acquired a staggering 159,100 BTC in Q2 2025. That’s a lot of Bitcoin, even by modern standards. These businesses now collectively hold over 1 million BTC, which makes you wonder: how much is enough? 🤔

But wait, there’s more! Michael Saylor’s company, Strategy, is the stand-out player in this Bitcoin drama. Strategy holds a jaw-dropping 632,457 BTC in its corporate reserve. That’s so much Bitcoin that it could probably fund a small country… or at least buy everyone in the office lunch for a year. 😅

‘Synthetically’ Halving Bitcoin? Wait, What?

Adam Livingston, author of “The Bitcoin Age and The Great Harvest,” has a theory that’s as wild as it is fascinating. He claims that Strategy is “synthetically” halving Bitcoin. That’s right, they’re playing God with Bitcoin’s supply, reducing what’s available to traders and investors in a way that’s similar to the halving events that occur every few years. Who knew that a company could be so powerful? 🦸‍♂️

Strategy is synthetically halving Bitcoin and will set the cost of capital for the next 100 years.

Most people think the Bitcoin supply curve is sacred.

Fixed. Immutable. Untouchable.

They’re wrong.

Strategy is manually rewriting Bitcoin’s scarcity schedule right now with…

– Adam Livingston (@AdamBLiv) April 27, 2025

Essentially, when a large company like Strategy pulls Bitcoin out of circulation and stashes it away like a dragon guarding its hoard, they’re messing with the supply in a way that mimics the halving protocol events. But this time, it’s not some mysterious code behind the curtain; it’s corporate strategy. Who’s got the power? Apparently, Strategy. 😎

How They’re Buying It, and Why You Should Care

Now, don’t get too excited. Strategy’s corporate treasury officer, Shirish Jajodia, assures us that they’re not trying to mess with short-term prices. They’re being all sneaky about it, spreading their purchases over-the-counter, away from exchange order books, to avoid sudden price jumps. Smooth, right? 😏

Demand Quadruples Mining Supply, Raising Supply Shock Fears

Hold on to your hats, folks. While miners are cranking out only 450 BTC per day, companies and funds are snapping up over 3,000 BTC daily. That’s four times the supply! With companies now holding more than 1 million BTC (thanks to Strategy’s massive stash of 632,457), River’s data suggests that we might be heading toward a supply squeeze. Yes, a squeeze, like the one you get when you try to stuff too many things into a suitcase. 🧳

So, as the reserves on exchanges dwindle, there’s always the risk that Bitcoin prices will take a wild ride. Stay tuned, this saga is far from over. 🎢

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2025-09-01 19:03