Bitcoin Treasuries May Struggle Against Michael Saylor’s Strategy
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Written by
Simonas Brazionis - Updated 2026-10-03 18:36:39
Economist and author Saifedean Ammous recently suggested that Bitcoin treasury companies focused on cryptocurrency acquisition might struggle to compete with Michael Saylor's Strategy. Ammous stated he did not perceive a compelling reason to choose another Bitcoin treasury company over Michael Saylor's Strategy.
Michael Saylor's Strategy maintains the largest corporate Bitcoin treasury globally, holding 847,666 BTC, acquired for $63.95 billion, as detailed in its recent 8-K filing. The company also reported a $5.02 billion USD reserve designated for preferred stock dividends and debt interest.
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Michael Saylor's Strategy's Financial Resilience
Ammous indicated that Michael Saylor's Strategy's substantial Bitcoin holdings enable it to secure loans at more favorable rates, providing an advantage over smaller treasury firms. He noted that prior market downturns had not brought the company close to liquidation.
The financing approach of Michael Saylor's Strategy received scrutiny when Bitcoin prices fell below $60,000, and the company's STRC preferred stock traded significantly below its $100 target price. In response, Michael Saylor's Strategy increased STRC's annual dividend rate to 12% and repurchased shares.
The company augmented its cash reserves and sold some Bitcoin to fund dividends and STRC repurchases before resuming its Bitcoin accumulation. Ammous commented that even a substantial Bitcoin drawdown would leave the company in a stable position due to its sufficient cash reserves for payments.
Bitcoin as a Corporate Reserve Asset
Ammous also proposed that businesses with positive cash flow could allocate surplus funds into Bitcoin as a long-term reserve asset, anticipating a broader adoption of this model by companies. He differentiated these reserves from cash required for daily operational needs.
However, Ammous cautioned about the inherent risks of investing in Michael Saylor's Strategy, expressing a personal preference for direct Bitcoin ownership.
Future Bitcoin Market Trends
Regarding future market trends, Ammous posited that Bitcoin has likely reached its bottom, though further price declines remain possible. He projected that Bitcoin's next market cycle could peak in 2029, with prices generally increasing until then. Ammous suggested that smaller drawdowns could enhance Bitcoin's appeal to large asset managers as memories of past bear markets diminish.
When asked for a Bitcoin price estimate for 2030, Ammous offered an approximate figure of $200,000, based on the Bitcoin power-law model, noting it was at the lower end of his cited range.
