Bitcoin treasuries may struggle to match Strategy, says Ammous
Reported by Cointelegraph · AI-assisted summary by ChikoCorp AI News Desk
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Summary
Economist and “The Bitcoin Standard” author Saifedean Ammous stated that Bitcoin treasury companies focused on buying cryptocurrency may have difficulty competing with Michael Saylor’s Strategy. Strategy holds the largest corporate Bitcoin treasury with 847,666 BTC worth $63.95 billion, along with a $5.02 billion US dollar reserve. Ammous highlighted Strategy’s advantage due to its size and liquidity, allowing it to borrow at lower rates and sustain dividend payments even during Bitcoin price drawdowns.
Why it matters
The source suggests that Strategy’s financial strength and cash reserves provide it with a competitive edge over smaller Bitcoin treasury firms in weathering market volatility. This implies that businesses with positive cash flow might increasingly adopt Bitcoin as a long-term reserve asset. Ammous cautions that investment in Strategy still carries risks and prefers direct Bitcoin holding.
Key context
Strategy’s financing model came under scrutiny as Bitcoin prices fell below $60,000, depressing the price of its preferred stock (STRC). In response, Strategy increased its dividend rate to 12%, repurchased shares, built cash reserves, and sold some Bitcoin to fund dividends and repurchases before resuming accumulation. Ammous also projected a possible Bitcoin price peak in 2029 and a best guess price of around $200,000 by 2030, based on the Bitcoin power-law model.
Key numbers and entities
Michael Saylor’s public company Strategy holds 847,666 BTC bought for $63.95 billion and reported a $5.02 billion US dollar reserve. Strategy’s preferred stock (STRC) had an annual dividend rate raised to 12%. Ammous referenced these figures and stated a Bitcoin price estimate of approximately $200,000 by 2030.
What remains unclear
It is not established which other Bitcoin treasury companies are being compared or their specific weaknesses relative to Strategy. Details about the risks Ammous sees in investing in Strategy are not elaborated. The source does not explain how widespread the adoption of Bitcoin as a reserve asset might become beyond Ammous’s expectation.