Ammous: Strategy's Size Gives It a Structural Advantage Over Bitcoin Treasuries

According to economist and author Saifedean Ammous, Bitcoin treasuries may struggle to compete with Strategy, a company that has been accumulating Bitcoin. In an interview, Ammous noted that Strategy's large size and financing advantages give it a structural advantage over smaller treasuries.

Strategy has acquired 847,666 BTC for $63.95 billion and has a $5.02 billion US dollar reserve to cover preferred dividends and debt interest. Ammous believes that even if Bitcoin's price drops significantly, Strategy's cash reserves will be enough to meet its obligations. However, he also cautioned that investing in Strategy carries risks, and it's not equivalent to holding Bitcoin directly.

Ammous expects broader business adoption of Bitcoin as a reserve asset, but it's essential to differentiate between surplus cash and funding for routine expenses. He favors holding Bitcoin directly, as corporate structures and financing arrangements can produce unexpected outcomes.

Looking ahead, Ammous suggested that Bitcoin's next cycle peak could occur in 2029, with prices rising predominantly until then. He also provided a rough estimate of $200,000 for Bitcoin's price in 2030, but emphasized the uncertainty of this prediction.