Saifedean Ammous, the economist and author of “The Bitcoin Standard,” says companies built around holding Bitcoin may find it difficult to compete with Strategy, whose scale, financing access and cash reserves give it a substantial advantage.
According to Cointelegraph, Ammous made the comments during the latest episode of the publication’s Proof of Thesis podcast. He said he saw no compelling reason to choose another Bitcoin treasury company over Michael Saylor’s Strategy, while also cautioning that investing in the company carries risks and that he prefers holding Bitcoin directly.
Strategy’s scale sets it apart
Strategy is the largest corporate holder of Bitcoin, according to figures from the company’s Monday 8-K filing cited in the report. The filing showed that Strategy held 847,666 BTC, acquired at a total cost of $63.95 billion.
The company also reported a $5.02 billion US dollar reserve. That money is intended to cover payments including dividends on preferred stock and interest on debt. Ammous said the combination of a large Bitcoin position and substantial liquidity helps Strategy withstand periods of market stress.
His argument is that size can improve a treasury company’s financing options. Strategy’s larger Bitcoin holdings may allow it to borrow at lower rates than smaller rivals, creating a funding advantage as companies seek to acquire more of the cryptocurrency.
Ammous said previous Bitcoin drawdowns had not pushed Strategy close to liquidation. He also argued that the company would remain in a relatively strong position even if Bitcoin experienced a considerably larger decline, because its cash reserve could continue to support required payments.
For a Bitcoin treasury company, liquidation risk can become an important concern when debt or other financing obligations are linked to an asset whose value can move sharply. Cash reserves provide a buffer for obligations such as interest and preferred-stock dividends, although Ammous stressed that Strategy still involves investment risk.
Financing pressure tested the model
Strategy’s approach received closer scrutiny during the summer, when Bitcoin fell below $60,000 and the company’s STRC preferred stock traded well below its target price of $100.
In response, Strategy raised STRC’s annual dividend rate to 12%, repurchased shares and increased its cash reserve. It also sold some Bitcoin to help pay dividends and fund STRC repurchases before returning to Bitcoin accumulation.
The episode highlighted the tension at the center of the treasury-company model. Strategy seeks to use financial markets and corporate funding to build its Bitcoin holdings, but it must also meet obligations to investors and creditors during periods when the cryptocurrency’s price is falling.
Ammous said companies with positive cash flow could allocate surplus funds to Bitcoin as a long-term reserve asset. He separated that money from the cash businesses need for daily, weekly and monthly operations. In his view, more companies may eventually adopt the model, and he said that “pretty much every business” should hold such a reserve.
That view does not mean companies should use operating cash for Bitcoin purchases. The distinction Ammous drew was between excess cash and the funds required to keep a business running.
Ammous discusses Bitcoin’s next cycle
Ammous said Bitcoin had probably already reached its low point, while acknowledging that another crash could still drive the price lower. He expects the next cycle could peak in 2029 and said prices may rise predominantly until then.
He also suggested that smaller market declines could make Bitcoin more acceptable to large asset managers as memories of earlier bear markets fade. However, his outlook remains uncertain: when asked for a 2030 price estimate, he gave a best guess of about $200,000 based on the Bitcoin power-law model, while adding that he would not bet on the forecast.
The remarks combine a positive long-term view of Bitcoin with a warning about volatility. Ammous’s preference for direct Bitcoin ownership also underscores the difference between owning the cryptocurrency and buying shares or securities connected to a company that holds it. A treasury company can be affected not only by Bitcoin’s price, but also by its debt, dividends, financing costs, share price and cash-management decisions.
Current market picture
Moneyiar data at 9:14 a.m. on October 3, 2026, showed Bitcoin at $84,646.46, down 1.81% over 24 hours but up 0.77% over seven days.
Other assets tracked by Moneyiar were also lower over the previous day. edgeX was at $0.4788, down 5%; ORDI stood at $4.5326, down 3.82%; and Ailey traded at $0.2694, down 0.16%. Over seven days, edgeX had fallen 18.76%, ORDI had declined 4.28%, while Ailey had risen 0.05%.
These figures provide a snapshot of market conditions at the stated time and do not alter the risks Ammous identified for either direct Bitcoin holders or investors in Bitcoin treasury companies.
