Saylor Warns on BIP-110 Upgrade as Strategy Halts Aggressive BTC Buying
Michael Saylor has sounded another warning on Bitcoin's proposed BIP-110 upgrade. Strategy, formerly MicroStrategy, is taking it seriously and has halted its aggressive BTC buying to build a massive cash reserve instead.
The company has paused purchasing despite raising approximately $1.26 billion through stock sales over the past three weeks, including a recent $525 million increase to its cash reserve. This move has given Strategy roughly 2.1 years of dividend coverage for its preferred shares.
With current holdings of 843,775 BTC, Strategy still aims to reach 1 million Bitcoin by the end of 2026, leaving a gap of 156,225 BTC to be purchased over the remaining eight months. This translates to around 7,000 BTC per week, but with no recent acquisitions.
BIP-110 proposes limiting arbitrary data stored in Bitcoin transactions and has sparked debate among developers. Saylor argues that changing Bitcoin's consensus rules threatens its long-term security, while some proponents see it as a way to reduce blockchain bloat and preserve the network's primary role as a payment system.