Strive CIO dey warn Bitcoin companies: convertible debt fit backfire if crypto remain flat

Strive CIO Ben Werkman dey warn Bitcoin treasury companies say di popular funding playbook — to issue convertible debt to buy Bitcoin — fit turn serious risk if crypto prices remain depressed or just sideways for long time. Werkman main point na na mechanics. Convertible bonds dey give companies cheaper capital because investors dey expect stock go rise make conversion sweet. But if equity prices no climb pass conversion thresholds, companies go need repay the debt for cash when the instruments mature — e get "ticking-clock" pressure to pay. E point say Bitcoin treasury firms don increase convertible bond issuance, and equity volatility for companies like Strategy (wey dem dey call MicroStrategy before) fit make drawdowns worse. For that scenario, cheap financing fit turn to expensive debt service or heavy repayment stress. As alternative, Strive talk say dem avoid convertible debt completely, dem dey use PIPE financing and preferred stock structures (including "SATA shares"). The trade-off na possible shareholder dilution, but Werkman say dilution better pass solvency risk wey come from near-term cash maturities. Strive action dey support the view: for January 2026 dem retire about $110M Semler Scientific debt (including $90M 4.25% convertible senior notes due 2030) and buy 333.89 BTC at average cost near $89,851 per coin. Strive total holdings now 13,131.82 BTC. For crypto traders, the main takeaway be say "convertible debt" don become central risk filter for choosing Bitcoin treasury stocks, fit affect equity volatility even if BTC itself steady.