As criticisms towards Bitcoin treasury companies intensify, one of the most controversial figures in the field, Michael Saylor, has not remained silent. Instead, he has passionately responded to the criticisms, reigniting the public discourse. During a conversation on the “What Bitcoin Did” podcast on January 12, Saylor vehemently responded to host Danny Knowles’ question about the sustainability of over 200 companies borrowing to buy Bitcoin.
Bitcoin Treasuries Face Challenging Times
Saylor’s reaction coincides with a critical period for Bitcoin treasury firms. Current data indicates that about 40% of the top 100 Bitcoin treasuries are trading below their market value, complicating efforts to secure new capital. Moreover, over 60% of these companies acquired Bitcoin at prices higher than its current value. Some have seen their share values plummet by nearly 99%.
Strategy’s Business Model Under Scrutiny
Strategy, formerly known as MicroStrategy and founded by Saylor, finds itself at the center of criticism. The company’s financial reports further fuel the debates. In the first nine months of 2025, Strategy generated approximately $125 million in operational cash flow from its core business, business intelligence software. Yet, during the same period, it raised over $50 billion through stocks, preferred shares, and convertible bonds, with nearly all funds going toward Bitcoin purchases. In essence, over 99% of the company’s Bitcoin treasury is funded by securities issuance rather than operational profits. While the software division remains profitable, its current scale is insufficient to support Bitcoin acquisitions or cover dividend and interest expenses.
Today, Strategy is the world’s largest corporate holder of Bitcoin, boasting over 650,000 Bitcoins, about twelve times the holdings of its closest competitors.
The Spread of the “Bitcoin Treasury” Trend
Saylor’s initiation of Bitcoin purchases through stock issuance in 2020 sparked a new market trend. Strategy shares surged more than tenfold, inspiring many companies worldwide by 2024. Some firms now focus entirely on Bitcoin acquisitions instead of product development or service offerings, aiming to enhance shareholder value via financial engineering.
According to BitcoinTreasuries.net, over 200 companies now hold Bitcoin in their balance sheets, collectively possessing about 1.1 million Bitcoin, equivalent to nearly $100 billion in assets.
Metaplanet and Other Transitioned Companies
Japan-based Metaplanet exemplifies this transformation. Once an operator of hotels nationwide, the company now owns no properties. Its entire business model revolves around borrowing, selling shares, and using the proceeds to buy Bitcoin. Similarly, entities like Nakamoto, Strive, and Brazil-based OranjeBTC operate as publicly traded vehicles providing Bitcoin access.
Saylor: “Adopting Bitcoin is Like Embracing Electricity”
Saylor dismisses criticisms, viewing the Bitcoin treasury model as a natural outcome of technological progress:
“Why would it be irrational for a company to adopt better technology? It’s like questioning the transition to electricity.”
Critics point out that the adoption of electricity did not require continuous borrowing or complex financial structures. However, Saylor argues that every company, profitable or not, is justified in pivoting toward Bitcoin, as even loss-making firms can offset deficits with Bitcoin value appreciation.
“No Competition, Plenty of Room for Everyone”
When asked if treasury companies compete with each other, Saylor was unequivocal:
“We’re not competing. The very question is ignorant. There’s enough room for 400 million companies to acquire Bitcoin.”
Critics, however, contest the notion of Bitcoin acquisition becoming a standalone business model. Strategy has yet to provide further clarification on the matter.
