Samson Mow warns about the fashion of Bitcoin’s corporate treasury

Samson Mow, current CEO of the firm Jan3, referred to the growing institutional fever by Bitcoin (BTC), a fashion that is currently dominating the market, and unleashed an extensive debate between influential characters of the ecosystem.

“All Bitcoin Treasury companies, led by executive directors that you have never heard of and that probably do not understand what BTC is, they will collapse as soon as there is a significant price drop,” said the specialist in digital asset markets.

Mow’s warning points to those companies that are building their business model around Bitcoin accumulation without really understanding the asset or having a solid long -term strategy. Are Companies that have put aside their products or services, because what they really seek is to benefit from the BTC price increases. According to the specialist, many of them are led by CEO without experience in the ecosystem, which makes them especially vulnerable to a pronounced fall in the market.

Given this ignorance, many of these companies could opt for a massive sale of their holdings, generating a bearish pressure in the price of the digital currency created by Satoshi Nakamoto, which could even affect those who do have a long -term strategy.

Mike German, former president of Bitcoin Magazine, responded to Mow’s approach and said that “some of the most effective CEOs are not those who have fame or many followers, often there is a big difference between being an expert operator and being a visible opinion leader in Bitcoin.”

Jameson LOPP, an American Investor and Cypherpunk UPONLY SAYLORMOON”

In this way, LOPP humorous the idea that the current market cycle is a period in which BTC only goes up (“Up Only”) without falls, known as “Saylormono“This term combines”Mononcycle“(Cycle or” up to the moon “) and” Saylor “, in reference to Michael Saylor, CEO of Strategy. That is, the specialist mocks those who think there will be no price falls because the” Saylor Cycle “only guarantees profits.

As cryptootics reported, Strategy is the firm that began this bitcoinization of corporate treasury. From 2020 to date, Saylor deployed an aggressive BTC purchase modelfinanced with the issuance of convertible bonds and actions, without relying on their operational income. Over the years, he made this strategy his main business, leaving his software solutions in the background. At present, it is the company that is quoted in the stock market with more BTC in its balance.

The debate did not end and Bastian Sinclair, a Bitcoin researcher, said: “I have a name for this: the acceleration loop of institutional reflexivity. When large institutions buy, legitimize the asset, which attracts more capital, reduces the offer and rises prices. The shortage is reinforced by itself.”

This is because BTC has a supply limited to 21 million units, and its broadcast is reduced every 4 years in an event known as Halving. Unlike money, BTC is not devalued by the issuance or monetary policies of the central banks. For that reason, this is a medium and long term bullish factor, is that if more companies want BTC, There will be less available offer and that will make its price up.

However, beyond the optimism of some analysts, Mow is not the only one who warned about the risk that more and more companies are abandoning their main business to focus their strategy exclusively on Bitcoin. Economist Henrik Zeberg coincides with the CEO of Jan3 and does not rule out that BTC suffers a strong price drop that seriously affects the balances of these companies.

“Strategy could become insolvent or be forced to make mass amortizations. The actions would fall and their creditors could face losses,” he warned.

It is worth clarifying that Zeberg defined Strategy as “a leverage Bitcoin holding company that passes through a software company.” In simpler terms, the accumulation of BTC is the main business model of the firm. For that reason, he states that if BTC collapses, Strategy It could be the trigger for a trusted crisis, generating a domino effect throughout the market. In this regard, he emphasizes: “When a high profile name begins to crumble, the feeling of the market could seriously affect.”

Along the same lines, analyst Jacob King states that Strategy strategy works as a “reflective ponzi loop.” The loop begins when the firm issues actions or debt to buy more bitcoin, which drives the price of BTC, raises the value of its own shares and attracts new investors. Then repeat the cycle with new emissions, as seen in the following image.

For King, This model depends completely on the price of Bitcoin continues to rise. If that impulse is broken at some point, the entire scheme can collapse.

Both Mow and King and Zeberg warn about institutional fever by BTC and, therefore, note that not all companies are prepared to face Bitcoin’s volatility.

Mow’s reflection works as a call for attention in a cycle dominated by the institutional FOMO. It is not just about having conviction or a long -term vision, but that the business model is profitable and can be sustained over time. If the BTC price falls and companies are not prepared, the risk of collapse and “domino effect” ceases to be a possibility and becomes a specific threat.