Bitcoin treasuries may struggle to match Strategy, says Ammous

What happened

Strategy holds the world’s largest corporate Bitcoin treasury, with 847,666 BTC acquired for $63.95 billion , according to its Monday 8-K filing. Strategy’s scale and cash reserves give it an edge over treasury rivals, according to Saifedean Ammous, author of “The Bitcoin Standard.”

Bitcoin treasury companies built primarily around buying the cryptocurrency may struggle to compete with Michael Saylor’s Strategy, according to economist and “The Bitcoin Standard” author Saifedean Ammous. The company also reported a $5.02 billion US dollar reserve to cover preferred stock dividends and debt interest.

Related: ‘Bitcoin Standard’ author explores reality where decentralized gold stopped WWI Strategy’s size and cash reserves Strategy’s larger Bitcoin holdings allow it to borrow at lower rates, giving it an advantage over smaller treasury companies, according to Ammous. He said previous drawdowns had not brought the company close to liquidation. Strategy’s financing model came under the microscope over the summer as Bitcoin fell below $60,000 and the company’s STRC preferred stock traded far below its target price of $100.