Saylor Rejects Bitcoin BIP 110 With 110 Reasons Against Spam Limits

Bitcoin News

Michael Saylor has come out firmly against BIP 110, publishing a lengthy post titled “110 Reasons BIP 110 Is a Bad Idea” on July 18. The proposal, submitted in December 2025 by a pseudonymous developer known as Dathon Ohm, would bundle seven technical restrictions to push Bitcoin back toward its original peer-to-peer electronic-cash design. Saylor, executive chairman of Strategy, argued the Bitcoin network must preserve free-market mechanisms and neutrality rather than force changes to consensus rules. He warned that redefining certain transactions as spam and blocking them through a consensus change sets a dangerous precedent that others could later exploit against privacy tools.

In a separate July 18 statement, Saylor framed corporate adoption as essential to Bitcoin achieving global-currency status, calling it “necessary, inevitable, and welcome.” He contended that companies supply the legal framework, scale, and continuity the asset needs, letting people organize around a shared mission with greater efficiency, transparency, and resilience. Treasury data shows 197 publicly listed firms now hold roughly 1.263 million BTC, worth about $80.82 billion, with Bitcoin accounting for 94.5% of the digital assets tracked across those companies. Over the past 30 days, however, the count of listed Bitcoin holders slipped by one, underscoring that corporate adoption is not yet a one-way trend.

Treasury data also underscores how concentrated that ownership remains. Strategy alone holds 843,775 BTC, about 66.8% of all corporate holdings, making its capital decisions more consequential for the market than any other listed holder. Twenty One Capital ranks a distant second with 43,514 BTC, followed by Metaplanet at 43,000, MARA Holdings at 36,303, and Bitcoin Standard Treasury at 30,021. This lopsided distribution means the corporate Bitcoin thesis depends heavily on a single company's balance sheet. At a price near $64,032, Strategy values its reserve at roughly $54.03 billion, against $3 billion in cash, $6.75 billion in debt, and $15.46 billion in preferred securities.

That balance sheet now carries a heavy dividend load. Strategy faces $1.763 billion in annual preferred-stock dividends, and company disclosures confirm it has begun tapping its Bitcoin to help cover them. In May it sold 32 BTC at an average of $77,135, raising about $2.5 million—its first disclosed sale since 2022—before offloading a further 3,588 BTC for roughly $216 million. The two transactions total 3,620 BTC, or about 0.43% of its stack. The company says the proceeds funded preferred dividends, signaling that its reserve now serves a dual role: long-term allocation and a liquidity source for the very securities issued to finance it.

The BIP 110 debate cuts to Bitcoin's identity. The proposal would impose seven simultaneous limits over roughly a year, including a 34-byte cap on scriptPubKey outputs, an 83-byte ceiling on OP_RETURN memo data, a 256-byte data-chunk restriction, and blocks on the OP_IF and OP_NOTIF conditional opcodes. Supporters argue that recording images and arbitrary data on the ledger raises node-operating costs and erodes the network's monetary focus. Saylor countered that the base layer cannot read a transaction's intent—it cannot tell whether bytes represent an image or a critical smart contract. Consensus changes, he stressed, should be reserved for fatal flaws like double-spends or inflation, not content policing.

Not every reading of Strategy's model is cautious. Standard Chartered's head of digital-assets research, Geoffrey Kendrick, argued that wider acceptance of the firm's Bitcoin-backed preferred securities would ease pressure to sell more BTC and could ultimately let it resume accumulation. He maintained a $100,000 year-end 2026 price target, implying roughly 56% upside from levels near $64,000 and still short of Bitcoin's all-time high. Separately, Strategy's own bank-adoption index scores the financial industry at 32% on Bitcoin-related activity, with Fidelity leading at 71%, ahead of BNY Mellon at 46% and Goldman Sachs at 45%. The firm has not published full category weights, limiting independent scrutiny.

COINOTAG's proprietary 42-indicator composite S/R scoring engine, with spot trading at $64,822 as of writing, rates the $63,741 support at 86/100—our strongest read—on the confluence of the S2 pivot, the 50-day SMA, a high-volume node, and the Ichimoku Tenkan line. On the upside, the engine scores $65,606 resistance at 68/100 (a flipped support-to-resistance level plus Donchian Upper) and $67,103 at 67/100 (Fibo 0.382 and Keltner Upper). Derivatives read constructive: funding sits at 0.0021%, open interest at $12.86 billion, and the long/short ratio at 1.54 (60.7% long). Yet the Fear & Greed Index reads 28 (Fear), and with dominance near 69.8% capital favors Bitcoin over altcoins. A bullish 55 RSI and bullish MACD favor a push toward $65.6K, but a break below $63,741 would invalidate the near-term uptrend and revive bear-market risk.