Economist Saifedean Ammous, author of The Bitcoin Standard, suggests that companies focused solely on Bitcoin accumulation may find it difficult to compete with Strategy. He highlights that Strategy maintains the world's largest corporate Bitcoin treasury, currently holding 847,666 BTC acquired for $63.95 billion.
According to an 8-K filing, Strategy holds a $5.02 billion cash reserve intended to cover debt interest and preferred stock dividends. Ammous notes that the scale of these holdings allows the firm to secure financing at lower rates compared to smaller competitors, providing a distinct market advantage.
The company's financial model faced scrutiny during a period when Bitcoin fell below $60,000. In response, Strategy increased the annual dividend rate for its STRC preferred stock to 12%, repurchased shares, and utilized some Bitcoin sales to fund these obligations before resuming its accumulation strategy.
Ammous believes that even in the event of significant market drawdowns, the company remains stable due to its cash reserves. He suggests that while more businesses may adopt Bitcoin as a long-term reserve asset, he personally favors direct ownership of the cryptocurrency over investing in treasury firms.
Looking ahead, Ammous predicts that Bitcoin may reach a price of approximately $200,000 by 2030. He bases this forecast on the Bitcoin power-law model, while noting that the next market cycle is expected to peak in 2029 with a general upward trend until that point.
