Ammous Sees No Compelling Case for Alternative Bitcoin Treasuries
Economist and author of 'The Bitcoin Standard', Saifedean Ammous, says Bitcoin treasury companies may struggle to compete with Michael Saylor's Strategy. The company holds the world's largest corporate Bitcoin treasury, with 847,666 BTC acquired for $63.95 billion.
Ammous notes that Strategy's larger Bitcoin holdings give it an advantage over smaller treasury companies in terms of borrowing rates. He also points out that previous drawdowns had not brought the company close to liquidation, thanks to its cash reserves.
According to Ammous, even a significant drawdown would leave Strategy in a decent situation due to its sufficient cash on hand to make payments. This has led him to suggest that more businesses should follow this model, as those with positive cash flow can invest excess funds in Bitcoin as a long-term reserve asset.