Ammous: Strategy's Scale Gives It Advantage Over Smaller Treasuries

Economist Saifedean Ammous thinks that Strategy's size and financing advantages make it difficult for smaller Bitcoin treasuries to outcompete, according to a recent interview on Cointelegraph's Proof of Thesis.

Strategy has acquired 847,666 BTC ($84.668 million) for $63.95 billion and holds a $5.02 billion US dollar reserve to cover preferred stock dividends and debt interest, as reported in its 8-K filing.

Ammous believes that Strategy's cash position and funding structure have kept it away from liquidation risk during periods of price stress, such as when Bitcoin fell below $60,000.

While Ammous expects broader business adoption of holding Bitcoin as a reserve asset, he cautions that investing in Strategy carries risks due to its complex financing structures.