Analyzing Institutional Whales: Can Riot and Strategy Make Bitcoin Volatile?
2025-05-06
This past month, two of the most talked-about names in the crypto space—Riot Platforms and MicroStrategy (now branded Strategy)—made moves that stirred questions across the crypto industry.
While Riot began selling its Bitcoin for the first time in months, Strategy doubled down, purchasing nearly $180 million worth of the cryptocurrency. Can these institutional whales make Bitcoin more volatile? Check out the full review!
Riot Platforms Breaks From the Hodling Tradition
Riot Platforms, one of the world’s largest Bitcoin mining companies, made headlines by selling 475 BTC in April 2025. This was the first sale reported by the company since January 2024 and marked a notable shift in its traditionally conservative approach to Bitcoin holdings.
Jason Les, CEO of Riot, explained that the company sold its mined Bitcoin to fund operations and continue business growth. He emphasized that the decision was made strategically, based on financial and operational evaluations, including the desire to maintain a strong balance sheet.
According to the company’s report, Riot mined 463 BTC in April. This means it not only sold its April production but likely also dipped into its reserves to cover operational costs.
Adding to the shift in its business strategy, Riot also announced it would stop its mining hosting operations, which were once a secondary source of revenue. The decision comes amid rising mining difficulty levels that have made the activity more challenging and less profitable.
Read also: Bitcoin Price (BTC), Market Cap, Price Today & Chart History
Strategy’s Bold Purchase: $180 Million More in Bitcoin
In stark contrast, Strategy, formerly known as MicroStrategy, continues to follow an aggressive Bitcoin accumulation plan. The company’s executive chairman, Michael Saylor, revealed that Strategy had acquired another 1,895 BTC for a total of $180.3 million.
The purchase was funded through proceeds from stock sales—a financing method the firm has used repeatedly over the years.
To date, Strategy remains one of the largest holders of Bitcoin in the world. But despite its strong public commitment to the asset, the company recently reported a $4.2 billion net loss for the first quarter of 2025.
This loss raised questions about the sustainability of its Bitcoin buying spree, especially since the firm has yet to turn a profit in its core operations.
Tech entrepreneur Anton Golub, known for his critical stance on risky financial practices in the crypto sector, voiced concerns about Strategy’s continued buying.
He warned that offering high-yield shares without solid revenue is financially unstable, comparing it to a Ponzi-like structure where sustainability depends on a constant influx of new investors.
Institutional Whales and Market Volatility
The contrasting strategies of Riot and Strategy highlight an important reality: institutional whales now have a significant influence on the Bitcoin market.
When a major miner like Riot stops accumulating and begins selling, it signals uncertainty or financial pressure. On the other hand, Strategy’s large and ongoing purchases might appear bullish, but they also introduce financial risk.
The issue becomes more complicated because of perception. Michael Saylor, in particular, has built a public image around Bitcoin evangelism. Many in the crypto community view him as a pillar of confidence.
But the truth is, his hands are tied. Selling even a small portion of Strategy’s Bitcoin holdings could cause panic, not just among investors in his company, but across the broader market.
This creates a fragile balance. As long as these whales act predictably, the market remains stable. But any sudden shift—such as mass liquidation or a funding crisis—could lead to severe Bitcoin volatility.
Read more about Bitcoin (BTC):
BTC to USD: Convert Bitcoin to US Dollar
Frequently Asked Questions (FAQ)
1. Who owns 90% of Bitcoin?
As of March 2023, over 90% of Bitcoin's total supply is held by the top 1% of addresses, according to Bitinfocharts.
2. How many people own 1 BTC?
As of October 2024, about 1 million Bitcoin addresses hold at least one BTC, though this doesn't reflect the exact number of individuals.
3. Can Bitcoin reach $1 billion per coin?
Fidelity's Jurrien Timmer predicted that Bitcoin could reach $1 billion per coin by 2038 to 2040, depending on long-term adoption and economic trends.
Disclaimer: The content of this article does not constitute financial or investment advice.
