Strategy Dominance: Ammous Sees Limited Incentive for Smaller Treasury Operators

Economist Saifedean Ammous believes that Bitcoin treasury-focused companies may struggle to compete effectively against Michael Saylor's Strategy due to its sheer scale and financing strength.

Ammous, author of The Bitcoin Standard, made this argument on Cointelegraph's Proof of Thesis. He noted that Strategy holds a substantial amount of BTC, with 847,666 purchased for $63.95 billion, alongside a reported $5.02 billion US dollar reserve to cover preferred stock dividends and debt interest.

This, according to Ammous, gives Strategy structural advantages that smaller treasury companies cannot match. He pointed out that past drawdowns have not pushed Strategy close to liquidation, which is crucial for investors as treasury models often hinge on a company's ability to meet obligations during periods of market stress.

Ammous also emphasized that corporate Bitcoin adoption should be viewed as a reserve strategy for surplus cash rather than operational liquidity. He warned that investing in Strategy carries risks and favors holding Bitcoin directly rather than relying on a corporate vehicle.