- Strategy’s leveraged BTC strategy could destabilize portfolios, risking a chain reaction if bitcoin faces major price corrections.
- Analysts argue institutional BTC buying loops inflate prices artificially, relying solely on perpetual bullish sentiment and limited token supply.
Samson Mow, CEO of JAN3, has publicly questioned the growing trend of companies allocating their reserves almost entirely to Bitcoin. His concerns target firms led by executives unfamiliar with the underlying principles of the asset.
According to Mow, these businesses are abandoning core operations in pursuit of short-term gains tied to the cryptocurrency’s price movements.
All of the Bitcoin treasury companies helmed by CEOs that you’ve never heard of before and who likely don’t understand what Bitcoin is, will fold as soon as there is any significant drawdown.
— Samson Mow (@Excellion) June 30, 2025
He argues that many of these executives lack the necessary understanding of Bitcoin’s function and limitations. The companies they lead are not equipped to manage sudden price drops.
“All the bitcoin treasury companies, run by CEOs you’ve never heard of and who probably don’t understand what BTC is, will collapse as soon as there is a significant price drop,” the digital asset markets specialist said.
If such a fall occurs, the result could be a broad liquidation of holdings. This would apply downward pressure on Bitcoin’s value and could destabilize even those players who have adopted more resilient strategies.
The comment sparked responses across industry circles. Mike Germano, former president of Bitcoin Magazine, countered that visible presence or popularity should not be confused with capability. He noted that many competent leaders do not engage in public discourse, yet still operate efficiently.
Disagree. Some of the most effective operator CEOs aren’t the ones with fame or large followings. There’s often a big difference between being a skilled operator and being a visible thought leader in Bitcoin.
— Mike Germano (@mikegermano) June 30, 2025
Software developer Jameson Lopp referenced the widespread belief in a perpetual bullish cycle. His phrase “UpOnly SaylorMoon” mocked the idea that Bitcoin can only increase in price, alluding to Michael Saylor’s aggressive acquisition model through Strategy.
But I was told this is the UpOnly SaylorMoonCycle
— Jameson Lopp (@lopp) June 30, 2025
Since 2020, Strategy has accumulated large volumes of Bitcoin using debt instruments such as convertible bonds and equity issuance. Its Bitcoin holdings now exceed those of any other publicly traded company. This acquisition model has shifted the company’s focus away from software services and toward digital asset management.
Despite the surge in BTC adoption, not all analysts support this direction. Bitcoin researcher Bastian Sinclair pointed to a loop he described as “Institutional Reflexivity Acceleration.” In his view, institutional buying legitimizes the asset, drawing further capital. That inflow reduces available supply, raising prices again. This mechanism depends on the asset’s capped issuance at 21 million units and its halving cycle every four years.
I have a name for this: The Institutional Reflexivity Acceleration Loop.
When big institutions buy, they legitimize the asset — which draws in more capital, shrinks supply, and forces prices higher. Scarcity reinforces itself.
— ₿astien Sinclair 💥 🐃 💥 (@BastienSinclair) June 30, 2025
However, Mow is not alone in his caution. Economist Henrik Zeberg suggests that if Bitcoin prices fall sharply, firms like Strategy could face insolvency. He argued that the company has effectively become a leveraged bitcoin holding entity, no longer operating like a typical software firm. If Strategy is forced to write down assets, stock prices could fall and creditors might incur losses.
Analyst Jacob King supports this interpretation. He described Strategy’s operation as a “reflexive Ponzi loop.” According to his breakdown, the company issues new equity or debt to purchase Bitcoin. This inflates BTC’s market value, which then elevates the firm’s own stock price. The loop is then repeated. The system, as King explains, is entirely reliant on continued price appreciation.
