CMC News

#Strategy Rules Out $BTC Treasury Acquisitions Amid Uncertainty

Strategy chairman #MichaelSaylor states the company has no plans to pursue merger and acquisition activity involving other #Bitcoin treasury firms. He told investors during Thursday's third-quarter earnings call that such deals carry too much uncertainty, despite potentially appearing beneficial. Saylor noted these transactions typically stretch six to nine months or longer, during which initial assumptions may no longer hold true.

Analysts have suggested that Bitcoin treasury companies may need to consolidate as the sector grows and firms compete for differentiation. Strive became the first $BTC treasury company to complete a merger, announcing in late September that it would acquire Semler Scientific in an all-stock deal. The combined entity holds 11,006 $BTC, making it the 12th-largest among public companies, behind Tesla.

Strategy maintains 640,808 BTC, the largest holdings of any company worldwide. Saylor did not completely rule out future acquisitions, leaving some flexibility for the company to reconsider its position. He emphasized that Strategy's focus remains on selling digital credit, improving the balance sheet, purchasing Bitcoin, and communicating these activities to credit and equity investors.

Strategy CEO Phong Le added that mergers and acquisitions involving software companies prove very difficult to execute successfully. He stated there is always something hidden behind what buyers think they are purchasing. Le applied the same reasoning to the acquisition of Bitcoin treasury companies, suggesting similar complexity and risk factors exist in such transactions.