Strategy’s bitcoin treasury model may outpace smaller corporate buyers, Ammous says

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Bitcoin treasury strategy model

Highlights

Strategy holds 847,666 BTC valued at $63.95 billion and maintains a $5.02 billion USD reserve for dividends and debt interest, according to its Monday 8-K filing.
After Bitcoin fell below $60,000 and STRC preferred shares traded well below $100, Strategy raised STRC’s annual dividend rate to 12%, repurchased shares, built cash reserves, and sold some Bitcoin.
Ammous expects more companies to use Bitcoin as a long-term reserve for surplus funds and projects a potential $200,000 Bitcoin price by 2030, barring unforeseen market crashes.

Scale and financing set Strategy apart

As reported by Cointelegraph, Ammous said on the latest episode of Proof of Thesis that he does not see a compelling case for choosing another Bitcoin treasury company over Strategy.

He said the company’s larger Bitcoin holdings help it borrow at lower rates, giving it an edge over smaller rivals. Strategy holds 847,666 BTC acquired for $63.95 billion, according to its Monday 8-K filing, and it also reports a $5.02 billion U.S. dollar reserve to cover preferred stock dividends and debt interest.

Ammous said previous drawdowns do not bring the company close to liquidation. Strategy’s financing model comes under pressure over the summer as Bitcoin falls below $60,000 and its STRC preferred stock trades well below its target price of $100, prompting the company to raise STRC’s annual dividend rate to 12%, repurchase shares, build cash reserves and sell some Bitcoin before resuming accumulation.

Broader corporate adoption and market outlook

Ammous said businesses with positive cash flow can place surplus funds into Bitcoin as a long-term reserve asset, adding that he expects more companies to adopt that approach. He distinguishes those holdings from cash needed for daily, weekly and monthly operations, while cautioning that owning Strategy still carries risks and that he prefers holding Bitcoin directly.

On the market outlook, Ammous said Bitcoin probably already bottoms, though another crash could still push prices lower. He said the next cycle may peak in 2029, with prices predominantly rising until then, and estimated Bitcoin could reach roughly $200,000 by 2030 based on the power-law model, though he added that he would not bet on that forecast.

Our earlier coverage of the global rise in long-term bond yields explained how growing concern about government finances has been pushing borrowing costs higher, with the U.S. under particular fiscal strain. We noted that net interest expenses are climbing alongside large deficits, raising the risk of a feedback loop in which higher yields further worsen debt servicing burdens and tighten financial conditions more broadly.

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