Strive Chief Investment Officer Ben Werkman warned at BTC Prague that prolonged Bitcoin price weakness is pressuring firms with debt-funded accumulation strategies toward restructuring, mergers, or forced asset sales. Bitcoin traded near a peak of around $126,000 in October 2025 but has since fallen well below that level, creating strain for treasury companies that raised capital through convertible bonds during the bull run. Werkman noted that extended downturns force operational decisions including Bitcoin sales to cover debt obligations — the opposite of what accumulation strategies intended. The warning highlights structural vulnerabilities in a sector that assumed continued price appreciation when constructing financing arrangements.
Convertible Debt Structures Increase Vulnerability During Price Declines
Many Bitcoin treasury companies raised capital through convertible bonds when BTC was trading near the October 2025 peak of around $126,000. With prices now well below that level, firms face compounding pressure: the asset backing their strategy loses value while debt servicing costs remain fixed. Werkman stated that an extended downturn forces firms to sell Bitcoin to cover debt obligations or fund operations, particularly where financing arrangements include collateral or coverage requirements. Companies that leaned heavily on convertible bonds during the bull run built structures that assumed continued price appreciation or stability — neither has materialized.
Strive Avoids Convertible Bonds Through Equity-Financing Model
Strive took a different approach when constructing its Bitcoin treasury strategy. Werkman noted that the firm was "one of the only ones that didn't take any convertible bonds," relying instead on equity financing. That structural decision has given Strive more room to maneuver, allowing the company to continue expanding even as competitors with heavier debt loads feel squeezed. The distinction between debt-funded and equity-funded treasury strategies matters significantly during periods of price weakness, as equity financing avoids the fixed servicing obligations that strain debt-reliant firms.
Strive Acquires Semler Scientific as Consolidation Signal
Strive's acquisition of Semler Scientific — itself a Bitcoin treasury company — points to a consolidation model where financially constrained firms seek exits through mergers rather than trying to outlast a prolonged downturn independently. Werkman acknowledged that deal activity has been limited so far, partly because company leaders are reluctant to sell at discounted valuations. The Semler Scientific deal came together because Semler Scientific Chairman Eric Semler supported the preferred-stock model that Strive had been developing, even though that same model had failed to gain enough shareholder support at Semler itself. That alignment on financing philosophy drove the transaction, suggesting future consolidation will involve strategic and philosophical compatibility rather than simply distressed asset sales. Nakamoto is actively restructuring its balance sheet to reduce debt and recover operating flexibility, according to Werkman.
Strategy Sells 32 BTC to Demonstrate Liquidity to Rating Agencies
Strategy recently sold 32 BTC at an average price of $77,135 per coin, generating roughly $2.5 million. The move drew immediate attention given the company's long-standing commitment to accumulation. Strategy CEO Phong Le said the sale was a test of internal systems, not a cash-generation move for dividend payments. Werkman framed the sale as a proof-of-concept for credit markets: rating agencies currently treat Bitcoin on Strategy's balance sheet as having effectively zero value when assessing creditworthiness. Under that framework, a company holding hundreds of thousands of BTC still gets rated as though that asset doesn't exist. Demonstrating the ability to sell Bitcoin and convert it into cash becomes a way of pushing back against that credit assessment methodology. Werkman stated that occasional Bitcoin sales help prove Bitcoin's resilience as a treasury asset rather than undermine the long-term accumulation strategy.
Strategy Purchases 1,587 BTC on June 15, Total Holdings Reach 846,842 BTC
The 32 BTC sale did not slow Strategy's core accumulation program. On June 15, Michael Saylor announced that the company had purchased 1,587 BTC for approximately $100 million, raising total holdings to 846,842 BTC. Simultaneously, Strategy expanded its USD reserves by $100 million, bringing total dollar reserves to $1.1 billion. That combination — small, deliberate Bitcoin sales to demonstrate liquidity alongside large continued purchases — reflects a treasury management approach that addresses the credit rating problem while maintaining long-term conviction. The company is showing lenders and investors that it can access Bitcoin's value when needed without abandoning its accumulation strategy.
Rating Agencies Treat Bitcoin as Zero-Value Asset on Balance Sheets
Rating agencies often discount Bitcoin's value to zero when assessing the creditworthiness of treasury firms, meaning a company holding hundreds of thousands of BTC may receive no credit benefit from those holdings. This creates a significant challenge for Bitcoin treasury companies seeking financing. If treasury firms can successfully shift how rating agencies value Bitcoin on balance sheets — even partially — it would substantially reduce their financing costs and widen access to capital markets. That structural change would benefit every company in the space. For now, firms like Strategy are attempting to address the issue through occasional, strategic sales that demonstrate Bitcoin's liquidity to credit markets.
FAQ
Why might Bitcoin treasury firms need to restructure or consolidate?
Prolonged Bitcoin price weakness puts firms with debt-funded accumulation strategies under particular strain. Companies that relied on convertible bonds assumed continued price support; when prices fall significantly below levels like the October 2025 peak near $126,000, debt servicing becomes harder and firms may be forced to sell Bitcoin to cover obligations or consider merging with stronger partners.
How has Strive avoided financial pressure amid the Bitcoin downturn?
Strive avoided convertible bonds entirely when building its Bitcoin treasury strategy, relying instead on equity financing. That approach leaves the company without the fixed debt servicing obligations that are squeezing competitors, allowing it to continue expanding through the current market weakness.
What was the purpose behind Strategy selling 32 BTC recently?
Strategy sold 32 BTC at an average price of $77,135 to demonstrate Bitcoin's liquidity to credit markets and rating agencies — not to fund dividends or operations. The sale was described internally as a test of systems. Strive's Werkman noted it serves a broader purpose: proving that Bitcoin can be converted to cash, which matters because rating agencies currently treat Bitcoin on treasury balance sheets as having zero credit value.
