Bitcoin Centralization and Strategy: A Thorough Analysis of the Risks and Future

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Hi, I'm John. Today I'll be explaining the centralization issue of Bitcoin, especially when a single company holds a large amount of it.

Bitcoin is popular as a decentralized currency, but recently, the large holdings of certain companies have become a hot topic. For example, Strategy, led by Michael Saylor, holds a few percent of Bitcoin's total supply. This article explains the background and impact of this centralization in a way that is easy to understand, even for beginners. Why is this topic important now? It is directly linked to Bitcoin's future prospects and market stability. Currently, Strategy's holdings exceed 3% and are expected to increase to 7% in the future, attracting the attention of investors and regulators. Let's start with the basics.

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What is Bitcoin Centralization? A Basic Recap

Bitcoin centralization refers to a situation in which certain individuals or organizations hold a large portion of Bitcoin. Bitcoin is originally decentralized, and its appeal is that anyone can participate in transactions equally, but if ownership becomes uneven, this philosophy could be shaken. In the past, early miners held a large portion of Bitcoin, but now there are increasing cases of institutional investors and companies purchasing large amounts.

For example, with Bitcoin, the total issuance volume is fixed at 2100 million BTC, so even if one company holds just a few percent of the market, it can exert significant market influence. This issue is currently attracting particular attention due to the actions of Strategy as of 2025. Going forward, there is a risk of stricter regulations and increased market volatility (the magnitude of price fluctuations).

Background to Strategy's Bitcoin Strategy

Michael Saylor is known as the CEO of Strategy (formerly MicroStrategy), and has been actively buying Bitcoin since 2020. He initially planned to replace his company's cash assets with Bitcoin, announcing his first purchase in August 2020. In the past, he has positioned Bitcoin as "digital capital" as a hedge against inflation and a means of preserving assets, and has seen its value surpass that of gold.

Currently, Strategy considers Bitcoin to be the company's primary asset, and continues to acquire more while raising funds by issuing stocks and bonds. As of September 2025, its holdings have reached approximately 638,985 BTC, equivalent to approximately 3% of the total supply. It has also been suggested that the company intends to increase this to 7% in the future, and the impact this will have on the market is being discussed.

Current holdings and latest news

As of September 2025, Strategy holds over 3% of the total Bitcoin supply. For example, it was reported that they purchased an additional 525 BTC around September 15, 2025, bringing the total to 638,985 BTC. This trend has continued even as stock prices have fallen, and Saylor remains committed to further purchasing.

On the other hand, fluctuations in Bitcoin prices have had an impact on the company, with the stock price falling 15% in August 2025. Currently, as more institutional investors enter the market and Bitcoin becomes more of a financial product, there are cases where Strategy's strategies are being imitated. Going forward, there is a high possibility that holdings will increase further towards the end of 2025.

Potential risks of centralization and countermeasures

If one company holds 3% or 7% of Bitcoin, the market will become more centralized, raising concerns about price manipulation. For example, if a large-scale sell-off occurs, there is a risk that the price will suddenly fall. In the past, large holdings by individual investors have been seen as problematic, but now corporate-level concentration is a new issue.

As a risk management measure, try to diversify your investments. The basic principle is to diversify not only into Bitcoin but also into other virtual currencies and assets. Also, in terms of security, choose a reliable platform and use two-factor authentication to avoid the risk of exchange hacking. When investing, research the market thoroughly at your own risk and keep in mind that this is not investment advice.

Diversify your holdings: Don't just focus on Bitcoin, but also consider altcoins such as Ethereum.
Stay up to date with the news: Stay up to date with trusted sources like CoinDesk and Cointelegraph.
Check regulations: In Japan, follow the guidelines of the Financial Services Agency and don't forget to file your taxes.
Long-term perspective: Try a HODL (hold and hold) strategy rather than short-term trading.

Future outlook and the role of Bitcoin

Going forward, if Strategy's holdings reach 7%, there is a possibility that regulatory intervention will increase. For example, in the United States, there is discussion about making Bitcoin a strategic reserve, and Saylor himself has advocated this. On the other hand, there are also positive aspects to centralization, such as accelerating Bitcoin adoption.

Overall, Bitcoin will continue to evolve as a digital asset, with an expected annual growth rate of 29% between 2025 and 2034. However, it is important to stay aware of changing regulations and strengthen security as you engage.

John's summary and thoughts

This time, we have summarized the centralization issues caused by Strategy's Bitcoin holdings. Centralization involves risks, but it can also be an opportunity to increase the value of Bitcoin. I encourage everyone to start with a small amount and get a feel for the market. I myself have been following these trends and am excited about the potential of virtual currencies. Finally, please make your own decisions and be cautious when investing.

If you are unsure which company to choose first, compare fees, the stocks available, and ease of use of the UI.click here.

This article has been compiled and fact-checked by the author, based on the following original articles and public information:

How to choose and compare cryptocurrency exchanges for beginnersclick here .

The mystery of Bitcoin centralization: What impact does it have for companies that hold 3% or 7%?