Consolidation or restructuring of bitcoin treasury companies is likely if the current market weakness persists, according to Strive Chief Investment Officer Ben Werkman.
Speaking to The Block's Gareth Jenkinson at BTC Prague on Friday, Werkman warned that some firms could face pressure from the debt structures many put in place during last year's DAT boom.
"You know, bitcoin moving higher solves a lot of issues for these companies," Werkman said. "The longer it stays down here, the more risk there is that companies would need to start selling bitcoin, whether it's to fund operations or to right-size debt obligations. But I do think you will see consolidation."
Werkman argued that prolonged weakness, with bitcoin (BTC) already down around 50% from its all-time high near $126,000 in October, could increase pressure on companies that financed their treasury strategies with convertible debt, particularly where those arrangements include collateral or coverage requirements that risk turning them into forced sellers.
"It was one of the reasons why for Strive, we were one of the only ones that didn't take any convertible bonds," he said. "We were an equity-only raise, and that's the reason you've been able to see us continue to progress throughout the entire bear market."
