Ammous Warns: Bitcoin Treasury Companies May Struggle to Compete with Strategy

Bitcoin treasury companies may struggle to compete with Michael Saylor's Strategy, according to economist Saifedean Ammous. Strategy holds the world's largest corporate Bitcoin treasury, with 847,666 BTC acquired for $63.95 billion, and has a $5.02 billion US dollar reserve to cover preferred stock dividends and debt interest.

Ammous notes that Strategy's size and cash reserves give it an advantage over smaller treasury companies. He points out that previous drawdowns had not brought the company close to liquidation, and that it has enough cash on hand to make payments even in the event of a significant drawdown.

Ammous believes that businesses with positive cash flow can put surplus cash into Bitcoin as a long-term reserve asset, and expects more companies to adopt this model. He distinguishes this from cash needed for daily, weekly, and monthly operations, and notes that investing in Strategy carries risks.

Ammous also shares his thoughts on Bitcoin's next cycle, predicting that it may peak in 2029. He notes that Bitcoin has probably already bottomed, but that another crash could still take prices lower. He also estimates that the Bitcoin price could reach $200,000 by 2030.