#Bitcoin #Strategy #BIP110 #MicroStrategy #Markets 🐋
Saylor defended Bitcoin's immutability. That same week he started building a cash buffer
When Michael Saylor says "don't touch the protocol," people listen. BIP 110 - a proposal to change Bitcoin's consensus rules to combat spam transactions - collapsed exactly when Saylor and Adam Back went public against it.
Adam Back backed him up: banning "junk" transactions is censorship inside a supposedly permissionless network. Miner support stalled at 0.7% - BIP 110 won't survive to the August deadline.
That same week, Strategy quietly sold 4.8M MSTR shares for $466.7M and purchased zero BTC. Cash reserves grew to $3B. The portfolio: 843,775 BTC at an average of $75,476 - carrying an unrealized loss of roughly $9.7B at current prices.
The man who publicly calls selling BTC "a mistake" chose a dollar cushion.
1️⃣ Bitcoin Banking Adoption Index: reality behind the rhetoric
Strategy's own benchmark across the 25 largest financial institutions puts real BTC adoption at just 32% - well below what Saylor's public messaging implies.
🟢 Fidelity leads at 71%
🟢 BNY Mellon at 46%, Goldman Sachs at 45%
🟢 The rest of the top 25 trail significantly behind
Even the leader tops out at 71%, while BNY Mellon (46%) and Goldman Sachs (45%) remain below 50%. Banks are adopting Bitcoin cautiously - exactly the same caution Strategy is now showing with its own BTC purchases.
2️⃣ The 2000 parallel still matters
Back then, MicroStrategy restated its earnings, the SEC filed a case, and shares crashed from $260 to $86. The key difference this time: Bitcoin's protocol was successfully defended. The network is not changing.
What remains open is whether the convertible bonds and preferred shares used to accumulate those 843K BTC can hold up under genuine market stress.
Bitcoin's immutability was defended by the person whose own financial construction is far more fragile than the protocol he just protected.
✨ The protocol question is settled. Bitcoin doesn't change - that argument is closed.
But whether the wrapper of convertibles and preferred shares holding those 843K BTC weathers a serious drawdown is still wide open. Protocol risk and Strategy risk are two distinct things. Only the first one just got resolved.
➡️ Website crouton.digital ⬅️
Saylor defended Bitcoin's immutability. That same week he started building a cash buffer
BIP 110 is dead - miner support stuck below 0.7%. Bitcoin doesn't change. But Strategy sold $466.7M in shares and bought zero BTC.
When Michael Saylor says "don't touch the protocol," people listen. BIP 110 - a proposal to change Bitcoin's consensus rules to combat spam transactions - collapsed exactly when Saylor and Adam Back went public against it.
💭 Michael Saylor, Strategy:
"There are 110 things more dangerous to Bitcoin than spam. BIP 110 turns a spam debate into a consensus change that would invalidate transactions currently valid and paying fees. That precedent is the danger."
Adam Back backed him up: banning "junk" transactions is censorship inside a supposedly permissionless network. Miner support stalled at 0.7% - BIP 110 won't survive to the August deadline.
That same week, Strategy quietly sold 4.8M MSTR shares for $466.7M and purchased zero BTC. Cash reserves grew to $3B. The portfolio: 843,775 BTC at an average of $75,476 - carrying an unrealized loss of roughly $9.7B at current prices.
The man who publicly calls selling BTC "a mistake" chose a dollar cushion.
1️⃣ Bitcoin Banking Adoption Index: reality behind the rhetoric
Strategy's own benchmark across the 25 largest financial institutions puts real BTC adoption at just 32% - well below what Saylor's public messaging implies.
🟢 Fidelity leads at 71%
🟢 BNY Mellon at 46%, Goldman Sachs at 45%
🟢 The rest of the top 25 trail significantly behind
Even the leader tops out at 71%, while BNY Mellon (46%) and Goldman Sachs (45%) remain below 50%. Banks are adopting Bitcoin cautiously - exactly the same caution Strategy is now showing with its own BTC purchases.
2️⃣ The 2000 parallel still matters
Back then, MicroStrategy restated its earnings, the SEC filed a case, and shares crashed from $260 to $86. The key difference this time: Bitcoin's protocol was successfully defended. The network is not changing.
What remains open is whether the convertible bonds and preferred shares used to accumulate those 843K BTC can hold up under genuine market stress.
🕖 $75,500 - the zone where Strategy turns profitable and would likely resume aggressive buying. $60,000 - debt covenant stress-test territory. Purchases paused and cash reserves climbing signals one clear thing: the company is positioning for volatility.
Bitcoin's immutability was defended by the person whose own financial construction is far more fragile than the protocol he just protected.
✨ The protocol question is settled. Bitcoin doesn't change - that argument is closed.
But whether the wrapper of convertibles and preferred shares holding those 843K BTC weathers a serious drawdown is still wide open. Protocol risk and Strategy risk are two distinct things. Only the first one just got resolved.
➡️ Website crouton.digital ⬅️