More Dilution Ahead for Strategy Shareholders?

Welcome to The Roundup!

This week's Bitcoin insights include 👇

• Strategy expands ATM program flexibility - more dilution incoming?

• Bitfinex whale resurfaces buying Bitcoin every second for 48 hours straight

• Bitcoin anchors stablecoin revolution as $35T flows through digital asset rails

Let's dive in!

1️⃣ Strategy's Dilution Machine Gets More Flexible

Michael Saylor just announced enhanced ATM equity offering capabilities, giving Strategy more flexibility to dilute shareholders whenever market conditions look “advantageous” (see below image with additional flexibility wording underlined in green).

While Saylor may frame this as "accretive dilution," shareholders have watched 90% of recent capital raises come from direct common stock dilution rather than their preferred share products. From June 23-29 alone, Strategy sold 1.3 million MSTR shares via ATM offerings to raise $519.5 million, directly diluting shareholders.

Why this matters? Strategy's 25% year-to-date increase in Bitcoin per Share (BPS) proves their model works—but only when they can sell shares at substantial premiums to NAV. The enhanced flexibility means more dilution when Bitcoin’s price drops, potentially pressuring the premium that makes their strategy profitable.

Strategy's Q2 results were undeniably impressive with $14 billion in operating income and $10 billion in net profit. But with Bitcoin's recent volatility and Strategy trading well below its November highs, the company may need this ATM flexibility more than shareholders would prefer.

Bottom line: More tools for dilution means Strategy can continue accumulating regardless of stock price performance. Great for Bitcoin accumulation, but potentially painful for shareholders buying in at current levels.

2️⃣ The $600-Per-Second Bitcoin Buyer Returns

Blockstream CEO Adam Back flagged the return of the legendary "Bitfinex Whale" who has accumulated approximately 300 BTC per day (equating to ~$600 every second) using sophisticated buying strategies (see below chart).

The methodical precision is remarkable. Adam Back documented the whale’s activities using sophisticated time-weighted average price (TWAP) strategies to minimize market impact while accumulating massive positions. Historically, this same whale has ramped up to 1,000 BTC per day (~$1,300 per second at current prices) during major accumulation phases.

Why this matters? Back isn't just any Bitcoin observer—as the inventor of Hashcash (referenced in Bitcoin's whitepaper) and CEO of Blockstream, his market commentary carries serious weight. When he flags whale behavior, smart money pays attention.

The sustained nature suggests institutional-grade capital deployment, not retail speculation. This buying rate alone could absorb the entire daily Bitcoin mining output in under four hours, demonstrating how whale demand continues overwhelming new supply creation.

3️⃣ Bitcoin Becomes Stablecoin Infrastructure's Backbone

Stablecoin transaction volumes exploded to $35 trillion annually through March 2025 (more than double the prior year) while users surged 50% to over 30 million. Bitcoin is quietly becoming the ultimate settlement layer for this digital dollar revolution.

The bigger picture: As Vice President JD Vance told the Bitcoin 2025 crowd, stablecoins are evolving into "a new pillar of U.S. economic diplomacy," streamlining payment rails to ensure dollar global dominance for decades.

While stablecoins handle everyday commerce, Bitcoin increasingly anchors the entire system as the ultimate store of value. Think of it as a two-tier monetary structure—stablecoins for transactions, Bitcoin for wealth preservation.

Why this matters now? The GENIUS Act establishing comprehensive stablecoin regulation is moving toward a Senate vote this week. Circle's recent IPO success (stock jumped 864% from placement price) proves institutional appetite for regulated stablecoin infrastructure.

As stablecoins proliferate globally, Bitcoin's role as "digital gold" becomes more valuable, not less. The more digital dollars flow through the system, the more institutions need Bitcoin as their ultimate hedge against fiat debasement.

🎯 The Final Word

While Strategy shareholders face more dilution risk, the broader Bitcoin ecosystem shows unprecedented institutional momentum. Smart money isn't waiting for regulatory perfection but rather accumulating aggressively while others hesitate.

The whale buying $600 every second proves there's still serious conviction at these levels. For long-term holders, that matters more than Strategy's share count games.

That's it for this week's roundup! Join us again next week as we dive into more institutional Bitcoin developments.

The Rhino Bitcoin Team

P.S. - Join the institutions securing their Bitcoin position. Get started with industry-low fees here (for iOS) or here (for Android).

⚡ Lightning Round

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Fed Ends Bitcoin Supervision Program: Federal Reserve terminates special crypto oversight program (banks can now offer Bitcoin services without ‘enhanced scrutiny’).