Strive’s Werkman says Bitcoin downturn may force treasury firms to restructure

Bitcoin treasury companies may need to revisit their capital structures if Bitcoin remains under pressure, with consolidation becoming more likely across the sector, according to Strive Chief Investment Officer Ben Werkman.

Summary

• Strive CIO Ben Werkman said prolonged Bitcoin weakness could push some treasury companies toward consolidation, particularly those carrying debt funded accumulation strategies.
• Werkman pointed to balance sheet restructuring efforts at firms such as Nakamoto and cited Strive’s acquisition of Semler Scientific as a sign of what could follow.
• He also defended Strategy’s recent sale of 32 BTC, saying it helped demonstrate Bitcoin’s liquidity even as the company continued expanding its holdings to 846,842 BTC.

Speaking at BTC Prague, Werkman said companies that relied heavily on convertible debt during the bitcoin treasury boom could face increasing strain if Bitcoin remains far below its October peak near $126,000.

While higher Bitcoin prices would ease many of those concerns, he said an extended downturn could leave some firms with difficult choices. Under those conditions, companies may need to sell Bitcoin to fund operations or manage debt obligations, particularly where financing arrangements include collateral or coverage requirements.

Werkman said Strive was “one of the only ones that didn’t take any convertible bonds” when building its bitcoin treasury strategy, explaining that the company relied on equity financing instead. According to him, that approach has allowed Strive to continue expanding through the current market cycle without facing the same pressures as some debt funded peers.

Consolidation could accelerate if market weakness continues

Among the outcomes he expects, consolidation sits near the top of the list.

Pointing to Strive’s acquisition of bitcoin treasury company Semler Scientific, Werkman said more mergers could emerge if financially constrained firms seek alternatives to operating independently. He added that company leaders are often reluctant to sell at discounted valuations, which has limited deal activity so far.

In Semler’s case, Werkman said the transaction came together because Semler Scientific Chairman Eric Semler supported the preferred-stock model that Strive had been developing, even though the proposal failed to gain enough shareholder support at Semler itself.

Elsewhere in the sector, firms have already started adjusting their balance sheets. Werkman cited efforts by Nakamoto to reduce debt burdens and regain operating flexibility, describing those moves as attempts to free companies from financing constraints that accumulated during more favorable market conditions.

The comments arrive as investors continue to examine how bitcoin treasury firms balance aggressive accumulation strategies with debt servicing requirements and shareholder obligations.

Recent developments at Strategy illustrate that debate.

Earlier this month, the company disclosed the sale of 32 BTC, a move that attracted attention because of its long-standing commitment to accumulating Bitcoin. The transaction raised roughly $2.5 million at an average price of $77,135 per coin, according to previous crypto.news reporting.

Questions about the sale intensified after some market participants interpreted it as a departure from Strategy’s accumulation strategy. Company executives later rejected that view.

Strategy CEO Phong Le said the sale was conducted as a test of internal systems rather than a move to generate cash for dividend payments. He added that the company still had access to funding channels such as equity issuance and preferred stock offerings.

Strategy’s bitcoin sale draws attention from treasury firms

Discussing the transaction, Werkman said the sale carried significance beyond its size because it helped demonstrate Bitcoin’s liquidity to credit markets and rating agencies.

According to him, rating agencies currently assign Strategy a rating that effectively treats the Bitcoin on its balance sheet as having no value when assessing creditworthiness. Under those conditions, proving the ability to sell Bitcoin and convert it into cash becomes important for treasury companies that maintain dividend obligations.

He argued that Strategy needed to show investors and lenders that the market could absorb Bitcoin sales if necessary and that the company could access that value when conditions required.

The sale did not prevent Strategy from continuing its accumulation program.

On June 15, Michael Saylor announced that Strategy had purchased 1,587 BTC for approximately $100 million, increasing total holdings to 846,842 BTC. The company also expanded its cash reserve by another $100 million, bringing total dollar reserves to $1.1 billion.

Previous crypto.news reporting noted that Strategy had raised its cash position to $1 billion after acquiring 1,550 BTC during the first week of June. With another purchase now completed, the company has continued adding Bitcoin while simultaneously increasing liquidity.

For Werkman, that approach supports a practical reality facing treasury companies. He said firms cannot build balance sheets around a single asset while refusing to use that asset under any circumstances. In his view, occasional sales, when required, help demonstrate Bitcoin’s resilience as a treasury asset rather than undermine the long-term strategy behind holding it.