Ammous: Strategy's Size Gives It Edge Over Other Bitcoin Treasuries

Economist Saifedean Ammous believes that Bitcoin treasury companies may struggle to compete with Michael Saylor's Strategy due to its size and cash reserves. With a corporate treasury of 847,666 BTC acquired for $63.95 billion, Strategy has the advantage of borrowing at lower rates.

Ammous pointed out that even in previous drawdowns, Strategy did not come close to liquidation, thanks to its sufficient cash reserves. He also thinks that businesses with positive cash flow should put surplus cash into Bitcoin as a long-term reserve asset, expecting more companies to adopt this model.

Ammous cautioned that investing in Strategy carries risks and favors holding Bitcoin directly instead. He predicted that Bitcoin's next cycle may peak in 2029, with prices predominantly rising until then.