Strive Chief Investment Officer Ben Werkman warned that sustained weakness in Bitcoin prices could force consolidation and restructuring across companies holding large Bitcoin treasuries. Firms that relied heavily on convertible debt are particularly exposed, he said, as repayment obligations become harder to manage with Bitcoin trading roughly 50% below its October peak near $126,000.
Werkman noted that many of these companies structured financing during last year’s rally, leaving them with liabilities that now appear burdensome in a lower-price environment. If conditions persist, some may be compelled to sell portions of their Bitcoin holdings to support operations or meet debt commitments.
Bitcoin weakness raises pressure on treasury firms
Debt structures and liquidity concerns come into focus
According to Werkman, companies may increasingly use asset sales to demonstrate liquidity and real economic value, especially as rating agencies often assign little or no credit to Bitcoin held on balance sheets. Strategy’s recent sale of Bitcoin, aimed at showing its ability to meet dividend obligations, reflects this dynamic.
Werkman said Strive has taken a different approach by avoiding convertible bonds and relying on equity financing, preserving flexibility during the downturn. He emphasized that maintaining the ability to sell assets when needed is critical to sustainable treasury management.
Signs of consolidation emerge
Werkman pointed to Strive’s acquisition of Semler Scientific as an early example of consolidation that could accelerate if market conditions remain subdued. He added that companies such as Nakamoto have already begun reducing leverage to stabilize their balance sheets, signaling broader efforts to manage risk without forced liquidations.
This trend could intensify as financially strained firms become acquisition targets for better-capitalized competitors. Deal activity has already picked up this year, and prolonged price weakness may lead to larger, more strategic mergers.
Strive expands Bitcoin holdings despite downturn
Amid the challenging environment, Strive has continued accumulating Bitcoin. The firm recently purchased 32 BTC, matching Strategy’s prior sale, and later added another 73 BTC worth about $4.7 million. These moves brought its total holdings to 19,105 BTC.
Werkman said the purchases reflect ongoing confidence in market liquidity and a commitment to maintaining exposure while adapting to changing conditions.
Broader market forces add selling pressure
Beyond corporate treasuries, other sources are adding to supply. Bitcoin miners have increased sales following the recent halving, which reduced block rewards from 6.25 to 3.125 BTC. This has forced many to liquidate more holdings to cover operational costs, contributing to sustained selling pressure.
At the macro level, monetary policy continues to shape sentiment toward risk assets. The Federal Reserve has kept interest rates in the 5.25% to 5.50% range, with policymakers signaling that cuts will only come once inflation is firmly moving toward the 2% target. Elevated borrowing costs are making previously issued convertible debt more difficult to service or refinance.
Leverage risks highlighted by major players
The challenges are illustrated by firms like MicroStrategy, which has financed Bitcoin acquisitions with billions in convertible notes. Its recent $1.5 billion debt repurchase underscores the ongoing need to actively manage liabilities, particularly when the underlying asset is underperforming.
Werkman concluded that relying too heavily on a single digital asset without operational utility can undermine balance sheet stability. Flexibility, including the willingness to sell holdings if necessary, remains essential as the market navigates a prolonged period of uncertainty.
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