Michael Saylor Defends Bitcoin Treasury Model as Critics Question Sustainability
Michael Saylor, founder of Strategy (formerly MicroStrategy), responded forcefully to growing criticism of corporate "Bitcoin treasury" strategies during a January 12 episode of the What Bitcoin Did podcast. Saylor defended companies that borrow or issue securities to buy Bitcoin, calling adoption of Bitcoin akin to adopting electricity and rejecting the idea that treasury companies compete with one another. The article notes a difficult environment for such firms: roughly 40% of the top 100 corporate Bitcoin treasuries trade below their market value and over 60% bought Bitcoin above current prices. According to BitcoinTreasuries.net, more than 200 public companies now hold about 1.1 million BTC (~$100 billion). Strategy itself reportedly holds over 650,000 BTC and funded over 99% of its Bitcoin purchases via stock, preferred shares, and convertible bonds rather than operational cash flow; in the first nine months of 2025 its software business generated about $125 million in operating cash flow while it raised over $50 billion via securities issuance for Bitcoin purchases. The piece highlights examples of companies that have pivoted entirely to Bitcoin acquisition (e.g., Japan’s Metaplanet) and summarizes critics’ concerns that acquiring Bitcoin as a standalone business model may be unsustainable. Disclaimer: not investment advice.
Bearish
The article highlights structural risks for companies that finance Bitcoin purchases primarily through debt or securities issuance. Key negative signals: ~40% of top Bitcoin treasury firms trade below market value and >60% bought above current prices, while many firms lack sufficient operating cash flow to support ongoing financing costs. Largeholders like Strategy (650k+ BTC) concentrated via leverage amplify downside risk: forced selling, dilution, or insolvency at negative price shocks could increase volatility and selling pressure. Historical parallels: after MicroStrategy’s aggressive buy program in 2020–2022, its stock and BTC-linked sentiment amplified drawdowns during BTC bear phases; leveraged corporate positioning can deepen market declines. Short-term impact: increased volatility and downside pressure as traders price in liquidation, fundraising difficulty, or write-down risk for treasury firms. Long-term impact: potential regulatory scrutiny, slower issuance of new corporate Bitcoin treasuries, and a re-rating of companies whose business models revolve around on-balance-sheet Bitcoin rather than core operations. Overall, the news raises risk awareness and is likely to be net bearish for Bitcoin and related equities until balance-sheet risks recede or markets reassess valuations.