Bitcoin Spot Demand Collapse Undermines Strategy’s Massive BTC Bets

Strategy’s aggressive Bitcoin (BTC) acquisitions, led by CEO Michael Saylor, are failing to reverse the sharp decline in spot demand, according to analysts.

Despite the company’s BTC holdings, market indicators point to a weakening retail and institutional demand, raising concerns about Bitcoin’s short-term price outlook.

Strategy’s Bitcoin Purchases Lose Momentum  

Since 2020, Strategy has been at the forefront of Bitcoin’s institutional adoption, holding 597,325 BTC—approximately 2.84% of the total supply. 

Strategy’s Bitcoin holdings (Source: Strategy)

Acquired at an average price of $70,982 per BTC for $42.4 billion, the company’s holdings show a boost from a 700% BTC price increase and a 3,000% surge in Strategy’s stock price since August 2020. 

However, recent figures show a major decline in the company’s acquisition rate, from 171,000 BTC in December 2024 to 16,000 BTC in June 2025. The buying slowdown is in line with the overall institutional pullback.

Strategy BTC acquisition history (Source: SaylorTracker)

Exchange-traded fund (ETF) purchases also fell from 86,000 BTC in December 2024 to 40,000 BTC over the previous month, a sign of weaker institutional demand. 

Despite the institutional pullback, Strategy’s weekly purchases of 10,100 BTC exceed the 450 BTC daily issuance following the 2024 halving, remain critical, but are insufficient to reverse the market’s declining momentum, analysts have noted.

Bitcoin Spot Demand Declines With Increased Market Vulnerabilities

Recent market statistics reveal a steep decline in Bitcoin demand. CryptoQuant reports an 895,000 BTC loss in demand in the past 30 days, which is a sharp drop in market participation. 

The Bitcoin mempool, a measure of pending transactions, is nearly empty, a proof of low retail spot demand. This lack of retail engagement, along with decreased institutional buying, remains a challenge to Bitcoin’s price stability, even as it trades near all-time highs.

Corporate BTC strategies also face risks. Anthony Scaramucci, in a recent Bloomberg interview, indicated that the pattern of holding Bitcoin within company treasuries, just like Strategy’s approach, can reverse. 

Scaramucci’s view aligns with a Standard Chartered report from June 3, 2025, warning that half of the corporate treasuries holding Bitcoin could face losses if BTC prices drop below $90,000, potentially influencing the demand slowdown.

Supply Constraints vs. Demand Challenges

Despite the bearish signals, some analysts remain bullish. Standard Chartered maintains a $200,000 BTC price target based on sustained ETF and corporate treasury buying.

A recent report notes that Strategy’s weekly 10,100 BTC purchases could tighten supply, ultimately triggering a supply shock given the 450 BTC daily issuance post-2024 halving. Such dynamics can drive sharp price increases, in contrast to current demand issues.

However, the market treads with caution. The -895,000 BTC demand loss, near-empty mempool, and reduced ETF inflows are all testaments of vulnerabilities. While Saylor’s approach supports institutional interest, the sharp decline in spot demand signals potential headwinds.