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Strive Chief Investment Officer Ben Werkman warned at BTC Prague on Friday that bitcoin treasury companies face a wave of consolidation if the current BTC price weakness persists, with debt structures taken on during last year's Digital Asset Treasury boom now turning into a liability. BTC is already down roughly 50% from its all-time high near $126,000 in October, and Werkman said prolonged sideways action increases the risk that treasuries would have to start selling bitcoin — either to fund operations or to right-size debt obligations.
Werkman singled out convertible debt with collateral or coverage requirements as the specific structure most likely to convert holders into forced sellers. He contrasted that with Strive's own equity-only raise, which he said is why the firm has been able to keep progressing through the bear market. The Strive–Semler Scientific all-stock deal — combining the two treasuries above 10,900 BTC — was offered as the template, with Werkman noting that more M&A hasn't materialized because no company wants to sell to a peer at a discount.
Why it matters
The treasury cohort is now large enough that its internal mechanics — refinancing, dividend coverage, mNAV compression — are starting to drive spot BTC flow independently of any external catalyst. Convertible-bond structures built when BTC was at $100K+ are now sitting on underwater collateralisation, and the longer the price stays depressed, the more the covenant mechanics do the selling for the holders.
Werkman also flagged that some peers — citing Nakamoto publicly — are already restructuring balance sheets to escape debt overhang and regain operational flexibility. The read is that consolidation pressure is already inside the sector, not a hypothetical triggered by a further drawdown.
Market impact
Strive is leaning into the dynamic — the firm bought 32 BTC last week (matching Strategy's sale) and added another 73 BTC for roughly $4.7 million on Monday, lifting holdings to 19,105 BTC.
Frequently asked questions
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What did Strive's CIO warn about bitcoin treasury companies?
Ben Werkman said at BTC Prague that prolonged BTC weakness could force consolidation among bitcoin treasury firms, with debt structures taken on during last year's DAT boom turning into a liability and potentially triggering forced BTC sales.
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Why are convertible bonds a specific risk for bitcoin treasuries?
Convertible bonds issued during last year's boom often carry collateral or coverage requirements. With BTC down roughly 50% from its October high near $126K, those covenants risk converting holders into forced sellers to meet obligations.
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How is Strive positioned differently from peers?
Strive raised capital through equity only — what Werkman called "one of the only ones" — and avoided convertibles. He said that structure is why Strive continued progressing through the bear market and was able to acquire Semler Scientific in an all-stock deal.
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Why did Strategy sell 32 BTC, according to Werkman?
Werkman argued the sale was strategically rational: with rating agencies assigning Strategy an effective junk rating and marking its BTC to zero, the company needs to prove to the market that bitcoin is liquid enough to be sold for dividend coverage without breaking price.
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How much bitcoin does Strive now hold?
Strive bought 32 BTC matching Strategy's prior-week sale, then added another 73 BTC for roughly $4.7 million on Monday, taking total holdings to 19,105 BTC.
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