Strategy's Bitcoin treasury model faces test in coming year, analysis suggests

An analysis suggests that the Bitcoin treasury strategy of Strategy, the largest single corporate holder of BTC, will face a significant test next year. According to Cointelegraph, experts have pointed out that while Strategy can leverage its BTC net asset value (NAV) premium to issue stock and expand leverage in a bull market, the model's sustainability could weaken sharply in sideways or bear markets. The media outlet explained that Strategy is no longer considered a traditional operating company but has transformed into a leveraged Bitcoin investment vehicle. While this structure can generate substantial returns in a bull market, it is also susceptible to sharp downturns depending on market conditions. Investors are advised to closely monitor the company's BTC holdings, average purchase price, leverage ratio, preferred stock and bond issuances, and overall cryptocurrency market performance.