Strategy's Dominance May Make Other Bitcoin Treasuries Obsolete

Economist Saifedean Ammous says that Bitcoin treasury companies may struggle to compete with Michael Saylor's Strategy, due to its larger size and cash reserves. According to a recent filing, Strategy holds 847,666 BTC acquired for $63.95 billion, as well as a $5.02 billion US dollar reserve to cover preferred stock dividends and debt interest.

Ammous notes that Strategy's financing model has allowed it to borrow at lower rates than smaller treasury companies. This gives it an advantage over competitors, which have been unable to weather previous drawdowns without being brought close to liquidation.

Strategy's ability to maintain its position even in times of market stress is a key factor in Ammous' assertion that more businesses should follow its model and hold Bitcoin as a long-term reserve asset. He notes that businesses with positive cash flow can put surplus funds into Bitcoin, which he believes could become increasingly attractive to large asset managers.

Ammous also made predictions about the future of Bitcoin, stating that it has probably already bottomed but another crash could still take prices lower. He estimates that Bitcoin's next cycle may peak in 2029 and put his best guess for a price estimate at roughly $200,000 in 2030.