Cryptocurrency analyst Willy Woo said Wednesday that while HODLing is an important aspect of Bitcoin BTC/USD investment, there was nothing wrong with periodic selling to reduce supply centralization.

What Happened: In an X post on Tuesday, Woo was justifying his decision to dump all of his Bitcoin holdings.

He acknowledged that self-custody HODLing is “incredibly important,” but there are exceptions to the rule.

“Consider whales, they HODL large concentrations of the supply and are a risk to the system. Whales divesting gradually (as they do in every bull market) is a good thing,” the Bitcoin maximalist said.

See Also: Elon Musk’s Tesla Sits On $284 Million Bitcoin Windfall In Q2, Refuses to Cash Out

Though not a whale himself, Woo said that he prefers to reinvest his holdings in Bitcoin’s infrastructure and contribute to the network’s growth.

“I’ll do just fine riding the picks and shovels,” he added.

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Why It Matters: Woo’s remarks coincided with growing institutional adoption of Bitcoin, led by exchange-traded funds and treasury companies like Strategy Inc. MSTR, which critics such as Peter Schiff have described as a shift from decentralized adoption to centralized buying.

Notably, retail ownership accounted for roughly 88% of Bitcoin’s circulating supply, while large holders held just 12% of the total, according to IntoTheBlock.

Moreover, corporations, both public and private, held a combined total of 1.21 million BTC, according to BItcoin Treasuries, which is only 6% of the total circulation supply.

Price Action:  At the time of writing, Bitcoin was exchanging hands at $$118,381.40, up 0.31% in the last 24 hours, according to data from Benzinga Pro.

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• Jim Cramer Says He’s Buying ‘A Lot’ Of Bitcoin As Protection Against Spiraling US Debt: ‘Worried About My Kids’

Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

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