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Bitcoin treasuries face pressure competing with Strategy’s scale
Strategy controls 847,666 BTC, backed by a $5.0 billion cash reserve, according to its latest filing reviewed by Ammous.
Economist Saifedean Ammous said Bitcoin treasury companies built around buying the cryptocurrency may struggle to compete with Michael Saylor’s Strategy, citing Strategy’s larger holdings and financing strength, in an interview with Cointelegraph.
Ammous pointed to Strategy’s position as the largest corporate Bitcoin treasury, noting it acquired 847,666 BTC for $63.95 billion, based on a Monday 8-K filing.
He added that Strategy’s larger Bitcoin balance can help it borrow at lower rates than smaller treasury rivals, and he said prior drawdowns had not brought Strategy close to liquidation.
Cointelegraph also reported that Strategy’s financing model drew scrutiny during the summer when Bitcoin fell below $60,000 and its STRC preferred stock traded far below its $100 target, after which Strategy raised the annual dividend rate to 12%, repurchased shares, built its cash reserve, and sold some Bitcoin to fund dividends.
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