Bitcoin Influencer Willy Woo Sells Holdings for Infrastructure Investments

On May 13, a prominent Bitcoin influencer, Willy Woo, sparked a debate within the crypto community by revealing that he was selling his Bitcoin holdings to invest in Bitcoin infrastructure companies. This announcement contradicted the widely held belief among crypto enthusiasts that one should never sell their Bitcoin.

Woo, known for his bullish stance on Bitcoin, had previously predicted that Bitcoin dominance would surpass 90% in the next 15 years. His decision to sell his Bitcoin holdings was met with criticism and skepticism from many in the community. Woo defended his decision by explaining that he was investing the proceeds in Bitcoin infrastructure companies, which he believed could yield higher returns than holding Bitcoin alone. He cited his past investment in Exodus Wallet as an example, noting that the profits from this investment were 2.5 times larger than those from his Bitcoin investment at the time.

Woo's revelation came in response to a tweet from The Bitcoin Therapist, who frequently criticizes those who sell their Bitcoin. Woo admitted that he had sold some of his Bitcoin to a contractor and was in the process of selling the rest to invest in infrastructure companies. He argued that this approach would help drive Bitcoin adoption and that startups with Bitcoin treasuries could mitigate risks and potentially yield higher returns.

Despite Woo's rationale, his decision was met with widespread disapproval. Many in the community referred to his decision as a mistake and expressed suspicion that he might be hinting at an impending market correction. Some even questioned his status as a "legendary" trader, citing past mistakes he had made since 2021. A screenshot of his post, taken out of context, was ridiculed and received severe backlash.

However, there were a few voices of support. Product builder Dan Sanchez noted that he had been paying people with Bitcoin and that the bigger incentive was making an impact on people who provide real value. In December 2024, it was reported that Woo had invested in Debifi, a noncustodial platform facilitating Bitcoin-backed lending, which he saw as a tool for long-term holders to borrow more funds without selling their holdings.

Just hours after the controversy surrounding Woo's Bitcoin sale, David Bailey of Bitcoin Magazine and Nakamoto, a new company following the steps of Strategy, got into an argument with his subscribers. The dispute arose when Bailey asked what was wrong with selling bitcoins to buy back discounted shares of his company, Nakamoto. Many subscribers expressed a strong "Never sell Bitcoin" stance, arguing that selling Bitcoin could send a negative signal to the market and weaken the company's trust in Bitcoin.

Bailey disagreed with the comments, stating that people in the comment section simply couldn't distinguish arbitrating from selling. He also noted that the biggest issue with a Bitcoin Treasury Company selling Bitcoin would be the psychological factor that a Bitcoin company is actually selling Bitcoin.

Another prominent Bitcoin influencer, Plan B, made headlines in February when he revealed that he was moving his Bitcoin holdings to ETFs to reach "peace of mind" and avoid problems with private key management. This move triggered criticism from both Bitcoin maxis and skeptics. Economist Peter Schiff referred to Plan B's switch to ETFs as "another example of Bitcoin not fulfilling its supposed purpose." Bitcoiners criticized Plan B for entrusting control over his funds to a third party.

The debate surrounding Woo's decision highlights the deep-seated beliefs within the crypto community about the importance of holding onto Bitcoin. Despite the rationale provided by Woo and others, the community remains largely opposed to selling Bitcoin, viewing it as a betrayal of the core principles of the cryptocurrency.