Despite Bitcoin trading around the same price it reached at the peak of the 2021 bull market, the network has racked up so many victories over the past five years that it is difficult to keep track.
The launch of spot Bitcoin ETFs, an explosion in Layer 2 development, a wave of corporate adoption, Bitcoin-backed mortgages, and even the creation of a Strategic Bitcoin Reserve were once considered distant dreams. Today, they are reality.
Yet with nearly every major milestone has come a chorus of critics arguing that Bitcoin is somehow losing its way.
The same debate has now emerged around the newly formed Bitcoin Security Consortium, where some of the biggest names in institutional Bitcoin have pledged $15 million to support Bitcoin development and long-term security.
Is this institutions giving back to the network that made their success possible, or is it the first step toward covertly gaining influence over Bitcoin's future? We investigate below.
Other top stories from the week include:
It’s not possible to sync a Bitcoin node in under one hour.
Jack Mallers leaves XXI to refocus on Strike.
Russia limits citizens Bitcoin purchases to $3,800 per year.
Latest News
Adoption
Lightning Labs launches Wavelength, a self-custodial API enabling developers and AI agents to integrate instant, low-fee Lightning payments without running nodes or channels.
Libbitcoin cuts full Bitcoin node initial block download to 55 minutes using GPU-powered signature verification, accelerating full validation for node operators.
Bitcoin Security Consortium launched with backing from Strategy, BlackRock, Coinbase, and others, pledging $15 million over three years to fund BTC security research, developers, and post-quantum cryptography.
Regulation
Illinois faces a lawsuit from the Digital Chamber seeking to block its Digital Asset Tax Act, arguing the measure unfairly taxes digital-asset transactions based on transfer mechanics.
CLARITY Act's latest draft includes incentives for white hat hackers to responsibly disclose cybersecurity vulnerabilities, incorporating input from former CFTC Chairman Giancarlo to strengthen digital asset security.
BitMEX faces a class-action lawsuit alleging it engineered forced liquidations to seize roughly 623 BTC in customer collateral as the exchange prepares to shut down.
Markets
Jack Mallers steps down as Twenty One Capital CEO to focus on Strike, with Raphael Zagury succeeding him as the XXI-Strike-Elektron merger ends, leaving Strike independent and Tether controlling XXI.
US spot Bitcoin ETFs record seven consecutive days of inflows totaling nearly $1B before reversing with a $225M outflow on Thursday.
BitMEX will shut down its exchange on September 23 after 11 years, fueling speculation the closure could allow the company and its owners to realize its roughly $270 million Insurance Fund surplus.
Treasury
STRC retail ownership declines from 78% to 71% between March and July as institutional adoption accelerates, with average institutional holdings rising 105% to $3.5M.
Strive announces a Bitcoin Stewardship Commitment, framing open-source developer funding as a fiduciary duty for companies that hold Bitcoin on their balance sheets, not philanthropy.
Zhibao Technology signs a non-binding term sheet to use 3,500 BTC as consideration for PIPE financing, linking a Chinese public company transaction to Bitcoin reserves.
Mining
Kazakhstan approves a strategic digital mining framework effective August 1, granting eligible miners long-term power access while requiring 10% of net mined digital assets to help build a national crypto reserve.
Poolin files for Chapter 11 bankruptcy protection in New Jersey, reporting roughly $173M in obligations after once ranking as the world’s largest Bitcoin mining pool back in 2019.
Hydropower surpassed natural gas as Bitcoin mining's largest energy source, accounting for 60% of electricity consumption, while low-carbon energy's share of the mining mix rose to nearly 60%, Cambridge found.
Politics
Russia's State Duma passes a bill establishing crypto licensing, permitting international crypto payments, while banning domestic crypto payments and limiting retail purchases to $3,800 annually.
India orders GitHub to remove BitChat repositories within three hours, citing concerns that the decentralized Bluetooth mesh messaging app could evade lawful interception and operate during internet shutdowns.
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Bam’s 2 Sats
Institutions Bought Bitcoin. Now They Must Protect It.
There is a saying in Bitcoin: “You do not change Bitcoin. Bitcoin changes you.”
This week offered a glimpse of what that means in practice, as institutions began giving back to the network that has created so much value for them.
First came Strive, which argued that supporting Bitcoin development should be viewed as a fiduciary responsibility, not philanthropy. Alongside that statement, the company announced a commitment to fund open-source Bitcoin developers through Brink.
Then came the Bitcoin Security Consortium, with Strategy, BlackRock, Fidelity, Coinbase, Block, ARK Invest, and others pledging $15 million over three years to strengthen Bitcoin's long-term security. Funnily enough, some are already calling it “Big Bitcoin”.
We have reached a point where Bitcoin is no longer just helping individuals, friends, and families build a better financial future. It is now helping institutions chart a new path as Bitcoin becomes increasingly financialized and recognized as a strategic asset.
And when you benefit from something, it is only natural to want to protect the source of that value.
For years, the Bitcoin community criticized institutions for profiting from Bitcoin's open-source infrastructure without contributing enough to the developers who maintain it. They built products, accumulated Bitcoin, and collected fees while relying on software funded largely by donations and a relatively small group of supporters.
Now, that appears to be changing.
Yet despite what many see as a major positive development, some in the Bitcoin community are already warning that this is the beginning of "Big Bitcoin" attempting to co-opt the network. Critics argue it is Michael Saylor's first step toward creating a Bitcoin lobbying machine, warning that corporate-funded development could eventually turn Bitcoin into "BlackRockcoin."
The key distinction will be whether these companies are simply funding Bitcoin or attempting to influence it. Members of the consortium say they will not direct protocol development or advocate for specific proposals.
That line matters, but only time will tell whether their intentions are genuine.
Bitcoin does not need corporate control. But companies building on it should not treat its development and security as somebody else’s responsibility.
Being a Bitcoiner means giving back too.
Keep stacking.
- Bam
