Bitcoin Momentum Fades as Strategy’s Debt-Funded Buying Becomes Key Support

U.S. spot Bitcoin ETFs were a major force behind the 2024 bull market, but hedge funds withdrew as arbitrage premiums disappeared, while South Korean retail investors shifted toward semiconductor stocks that had risen more than 150% over the previous 12 months. Strategy, formerly MicroStrategy, has instead raised funds to buy Bitcoin through its STRC preferred stock, which carries an 11.5% annual yield. With demand concentrated in one company’s financial engineering, any breakdown in its fundraising could also weaken support for Bitcoin prices.

As of May 21, 2026, Bitcoin was trading at about $77,900. Strategy had purchased 171,238 Bitcoin since the start of the year, more than the roughly 62,000 coins produced by miners over the same period, and was estimated to account for 70% of market buying. It held about 843,700 Bitcoin at an average cost of $75,700. Meanwhile, miners were increasingly selling coins as they produced them and redirecting capital toward AI infrastructure and computing-capacity leasing, adding to supply pressure.