Galaxy Digital CEO Warns MicroStrategy’s $2.54B Bitcoin Buying Could Cause Supply Squeeze
Galaxy Digital CEO Mike Novogratz warns that aggressive accumulation by MicroStrategy’s Michael Saylor—who spent $2.54 billion to acquire 34,164 BTC, bringing total holdings to 815,061 BTC valued at $61.56 billion—could outpace available Bitcoin supply and trigger a market squeeze. He also flagged rising AI-driven hacks and quantum computing threats.
1. Supply Squeeze Warning
Galaxy Digital CEO Mike Novogratz cautioned that sustained purchases by MicroStrategy, which spent $2.54 billion for 34,164 BTC in its latest acquisition, may outstrip available Bitcoin supply and exacerbate market liquidity constraints.
2. MicroStrategy’s Accumulation Model
Novogratz outlined MicroStrategy’s strategy of leveraging its share price premium—currently 130 times NAV—to raise capital and reinvest proceeds into Bitcoin, lifting its total holdings to 815,061 BTC, valued at roughly $61.56 billion.
3. Emerging Security Risks
Beyond supply concerns, Novogratz highlighted growing threats to the crypto ecosystem from AI-driven hacking techniques and the future potential of quantum computing to undermine existing security protocols.