Strategy's Dominance Over Bitcoin Treasuries Raises Concerns

Economist Saifedean Ammous believes that Michael Saylor's Strategy has an unfair advantage over other Bitcoin treasury-focused companies due to its scale and financing strength.

In an interview with Cointelegraph, Ammous stated that Strategy's corporate balance sheet gives it a significant edge in terms of borrowing costs and liquidity buffers. He noted that the company holds 847,666 BTC purchased for $63.95 billion, along with a reported $5.02 billion US dollar reserve to cover preferred stock dividends and debt interest.

Ammous argued that this structural advantage makes it difficult for smaller treasury companies to compete effectively, as they struggle to match Strategy's borrowing costs and liquidity buffers. He also warned that investing in Strategy carries risks, and prefers holding Bitcoin directly rather than relying on a corporate vehicle.