Strategy’s Massive Bitcoin Holdings Spark Centralization Fears

Internet entrepreneur Vinny Lingham has sparked debate on X after reacting to Michael Saylor’s company, Strategy, announcing a major Bitcoin acquisition. The firm revealed it bought 3,459 BTC worth $285.8 million, pushing its total holdings past 530,000 Bitcoin—approximately 2.5% of the total supply.

Lingham’s post, stating “Strategy is now the Federal Reserve for Bitcoin,” reflects growing criticism over Bitcoin's perceived decentralization eroding as financial elites accumulate massive stakes. Strategy, which pivoted from business intelligence to long-term Bitcoin investment, is increasingly viewed as centralizing control of the asset it claims to champion as decentralized.

This move comes amid market concerns that institutions like Strategy are turning Bitcoin into a Wall Street-controlled asset. Critics argue that such concentration of ownership undermines the foundational ethos of Bitcoin. The U.S. Federal Reserve, often criticized for manipulating money supply, is used by Lingham as a metaphor for the power Strategy now holds in the BTC ecosystem.

Prominent venture capitalist Jason Calacanis echoed similar concerns last month, claiming Bitcoin has been “hijacked” by corporate giants. He warned that Saylor and similar actors could "break the Bitcoin game" by encouraging institutional dominance over crypto’s most iconic asset.

Saylor previously faced backlash in 2024 after dismissing skeptics of institutional BTC ownership as "crypto anarchists." Though he later softened his stance, critics remain wary of Strategy’s growing influence.

With Bitcoin ETF demand reportedly cooling, Strategy's continuous buying spree has reignited fears that Bitcoin may become centralized under corporate control, potentially compromising its long-touted decentralization. As Strategy’s BTC treasury grows, so too does the controversy around whether this financial power aligns with Bitcoin’s original vision.