Saylor Warns on BIP-110 as Strategy Pauses BTC Buying

Strategy went five weeks without buying BTC and built a $3.75 billion cash buffer. At the same time, BIP-110 is moving closer, putting Bitcoin governance under fresh pressure.

Key Takeaways

• Michael Saylor says BIP-110 could weaken Bitcoin governance and network neutrality.
• Strategy went five weeks without buying BTC and increased its dollar reserve to $3.75 billion through stock sales.
• The company holds 843,775 BTC and still aims to reach 1 million BTC by the end of 2026.

Michael Saylor says Bitcoin has already won, but Strategy has gone five weeks without adding a single BTC. Over the same stretch, the company built its cash reserve to $3.75 billion (€3.3 billion) as the debate around BIP-110 heads toward an important stage.

BIP-110 Sets the Tone

Saylor’s warning comes at a sensitive time. BIP-110, also called the Reduced Data Temporary Soft Fork, was introduced in December 2025 by developer Dathon Ohm with technical input from Luke Dashjr. The proposal would temporarily cap the amount of arbitrary data in Bitcoin transactions in an effort to reduce congestion caused by non-financial data.

The current timeline calls for a mandatory lock-in period to begin in August 2026. After that, blocks that fail to signal support would be treated as invalid. Activation would follow two weeks later, and the rules would expire again after roughly a year. Miner support is still below 1% based on the latest figures, so activation looks unlikely for now, even though the proposal remains active.

Saylor argues that Bitcoin’s consensus rules are what protect the network’s scarcity, settlement function, and neutrality. From his perspective, changing those rules could create a risky precedent for Bitcoin governance.

Strategy Chooses Cash

Strategy’s pause in BTC buying is tied to how it is funding the business. A Form 8-K from July 27 showed that the company added another $525 million (€462 million) to its dollar reserve, lifting the total to $3.75 billion (€3.3 billion). Strategy says that gives it about 2.1 years of dividend coverage against roughly $1.76 billion (€1.5 billion) in annual preferred obligations.

The reserve was funded through stock sales rather than by selling bitcoin. Last week, Strategy sold $544.5 million (€479 million) in MSTR shares, following about $467 million (€411 million) and $263.5 million (€232 million) in the two weeks before that. Altogether, that came to roughly $1.26 billion (€1.1 billion) over three weeks.

That fundraising happened while MSTR traded around $96.66 (€85), about 76% below its 52-week high of $414.36 (€365). For Strategy, raising money through equity is now much more expensive than it was a year ago.

What This Means for BTC

Strategy still wants to hold 1 million BTC by the end of 2026. It currently owns 843,775 BTC, which means it would need another 156,225 BTC to hit that target. With about 22 weeks left, that works out to roughly 7,000 BTC per week, or nearly $447 million (€393 million) per week at current prices, even though the company is not buying right now.

For European crypto readers, the bigger point is that Strategy remains one of the largest institutional BTC holders in the world. A paused buying streak, a large cash buffer, and an ongoing fight over Bitcoin governance all show how closely corporate financing and protocol politics are linked in this market.

The wider market backdrop matters too. Bitcoin is trading around $63,817 (€56,100), about 49% below its October 2025 peak. Strategy’s average purchase price is around $75,494 (€66,400) per coin, which means the position is still deeply underwater on paper. That tension between a defensive balance sheet and an aggressive BTC strategy makes the next few weeks especially important for both BTC and MSTR holders.

Bitcoin is also not moving in isolation from the rest of the market. Bitcoin Falls 2.7% After Wall Street Close and Weak Kospi shows how risk-off sentiment and weaker Asian stocks are adding more pressure to the price.