Key facts
- MicroStrategy holds 847,666 BTC acquired for $63.95 billion.
Bitcoin treasury companies may struggle to compete with MicroStrategy’s strategy, according to Saifedean Ammous, author of “The Bitcoin Standard.” Ammous cited MicroStrategy’s scale, cash reserves, and financing model as key advantages over rivals, though he cautioned about investment risks and favors holding Bitcoin directly.
The competitive landscape for Bitcoin treasury strategies is being shaped by the scale and financial resilience of companies like MicroStrategy, potentially influencing how other businesses approach Bitcoin adoption as a reserve asset.
Bitcoin treasury companies focused on acquiring the cryptocurrency may find it difficult to compete with MicroStrategy’s strategy, according to Saifedean Ammous, author of “The Bitcoin Standard.” Ammous stated on Cointelegraph’s Proof of Thesis podcast that he sees no compelling reason to choose other Bitcoin treasury companies over MicroStrategy.
MicroStrategy holds the largest corporate Bitcoin treasury globally, with 847,666 BTC acquired for $63.95 billion, as detailed in its Monday 8-K filing. The company also maintains a $5.02 billion US dollar reserve to cover preferred stock dividends and debt interest. Ammous highlighted that MicroStrategy’s substantial Bitcoin holdings enable it to secure lower borrowing rates, providing an advantage over smaller competitors. He noted that past drawdowns have not brought the company close to liquidation, and even a significant Bitcoin price drop would likely leave them in a stable position due to their cash reserves.
Ammous suggested that businesses with positive cash flow should consider allocating surplus funds to Bitcoin as a long-term reserve asset, distinguishing this from cash needed for immediate operational needs. He anticipates this model will be adopted by more companies. However, Ammous also cautioned about the inherent risks of investing in MicroStrategy and expressed a personal preference for holding Bitcoin directly.
Regarding Bitcoin’s future price, Ammous believes the market has likely bottomed, though another crash is possible. He projected that Bitcoin’s next cycle peak could occur in 2029, with prices generally increasing until then. His best estimate for Bitcoin’s price in 2030 is around $200,000, based on the Bitcoin power-law model, though he advised against betting on this specific figure.
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