Strategy co-founder and executive chairman Michael Saylor said Bitcoin needs “disciplined expansion” through banks, companies, securities, credit and capital markets, laying out a path for the asset as spot exchange-traded fund (ETF) outflows and a broader market sell-off test institutional demand.
On Friday, Saylor published an essay, saying Bitcoin’s base layer should be treated as “sacred infrastructure,” with most innovation occurring through higher layers, applications, custody systems, credit instruments and financial infrastructure.
The comments frame Bitcoin’s next phase as a clash between two institutional channels: passive spot ETF exposure, which has broadened access but remains sensitive to redemptions, and the corporate and credit-market adoption model favored by Saylor’s Strategy.
Saylor argued Bitcoin should become embedded in the machinery of finance rather than depend only on spot buyers or ETF inflows. He said Bitcoin’s future requires balancing adoption, innovation and self-custody while preserving the network’s core properties.
The essay comes during a sharp Bitcoin market sell-off that has put both major institutional channels under pressure. Spot Bitcoin ETFs posted weekly net outflows of $1.42 billion, $1.26 billion and $1 billion in the last three weeks of May, while the current week’s outflows have reached $1.4 billion so far.
Strategy also recently sold 32 Bitcoin to fund preferred stock dividends, its first sale since 2022, denting the “never sell” narrative that has long surrounded Saylor’s corporate Bitcoin strategy.
Spot Bitcoin ETF inflows and outflows in the last four weeks. Source: SoSoValue
Analysts split on demand reset
The pressure has sharpened a broader debate over whether Bitcoin’s recent decline is a temporary reset after excessive leverage, or a sign that institutional demand is weakening after months of ETF-led buying.
Lacie Zhang, research analyst at Bitget Wallet, said Bitcoin may already be closer to clearing the episode than equity markets after a $1.8 billion liquidation wave, deeply negative funding rates and a sharp reset in open interest….
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