Strategy's Michael Saylor Blames 'Capital Rotation' Into AI as Bitcoin Dives 13%
Michael Saylor, Executive Chairman of Strategy, has attributed Bitcoin's recent 13% dive to a massive "capital rotation" into artificial intelligence (AI) infrastructure, dismissing concerns about weakening fundamentals. As Bitcoin enters a technical bear market, Saylor frames the volatility not as a crisis, but as a predictable market correction driven by the unprecedented scale of AI investment.
The Numbers: A $400 Billion Shift
The data supports Saylor's thesis of a liquidity shift. Over the past six months, an estimated $400 billion has flowed into AI development. Wall Street consensus projects that combined hyperscaler capital expenditures could exceed $600 billion in 2026 alone, with $450 billion dedicated specifically to AI hardware and networking.
This capital hunger has coincided with significant outflows from Bitcoin ETFs, which have seen roughly $4 billion exit since mid-May. Consequently, Bitcoin has dropped nearly 50% from its October 2025 peak, trading as low as $61,400. The divergence is stark: while crypto assets bleed, AI-related equities continue to hit record highs.
Strategy's "Break in Character": Selling to Pay Dividends
In a move that surprised some long-time observers, Strategy—the largest corporate holder of Bitcoin—sold 32 BTC between May 26 and May 31. The sale, generating $2.5 million at an average price of $77,135, was executed to fund dividend payments on the company's preferred shares.
While the 32 BTC sold represents a microscopic fraction of Strategy's total holdings (843,706 BTC), it marked a departure from Saylor's historic "never sell" doctrine. Saylor defended the move as a demonstration of liquidity management, stating it was intended to "inoculate the market" to the reality that Strategy can sell Bitcoin as a normal business operation without signaling a lack of conviction.
The AI IPO Wave: A Temporary Drain?
Analysts corroborate Saylor's view, pointing to a looming wave of AI Initial Public Offerings (IPOs) as a continuing pressure valve for crypto liquidity. Companies like SpaceX, Anthropic, and OpenAI are expected to go public in 2026, potentially attracting hundreds of billions in fresh capital that might otherwise have flowed into digital assets.
However, some market observers suggest this pressure may be temporary. Once these major AI IPOs conclude and the initial capital deployment stabilizes, profits could rotate back into undervalued sectors, potentially benefiting Bitcoin in the late stages of 2026 or early 2027.
Strategic Insight: Scarcity vs. Hype
Saylor's commentary highlights a fundamental tension in modern finance: the competition between absolute scarcity (Bitcoin's fixed supply) and narrative-driven growth (AI's transformative potential). In the short term, narratives drive capital flows; investors chase the sector promising the highest immediate returns. In the long term, Saylor argues, scarcity remains the only true store of value.
For institutional investors, the lesson is clear: asset allocation must account for macro-narratives. Even the strongest fundamentals can be temporarily overshadowed by a sector-wide capital rush.
The Bottom Line
Michael Saylor's diagnosis is simple: Bitcoin isn't broken; capital is just busy elsewhere. The $600 billion AI infrastructure build-out is a once-in-a-generation capital event that is inevitably drawing liquidity from other asset classes. For Bitcoin maximalists, the strategy remains unchanged: accumulate during periods of distraction. For the broader market, the divergence serves as a reminder that in finance, opportunity cost is the ultimate driver of price action.
