Mergers and Acquisitions Strategy
Strategy chairman Michael Saylor has stated that the company has no plans to pursue merger and acquisition activity involving other Bitcoin treasury firms. He informed investors during Thursday's third-quarter earnings call that such deals carry too much uncertainty, despite potentially appearing beneficial. Saylor noted these transactions typically stretch six to nine months or longer, during which initial assumptions may no longer hold true.
Analysts have suggested that Bitcoin treasury companies may need to consolidate as the sector grows and firms compete for differentiation. Strive became the first Bitcoin treasury company to complete a merger, announcing in late September that it would acquire Semler Scientific in an all-stock deal. The combined entity holds 11,006 Bitcoin, making it the 12th-largest among public companies, behind Tesla.
Strategy maintains 640,808 BTC, the largest holdings of any company worldwide. Saylor did not completely rule out future acquisitions, leaving some flexibility for the company to reconsider its position. He emphasized that Strategy's focus remains on selling digital credit, improving the balance sheet, purchasing Bitcoin, and communicating these activities to credit and equity investors.
Challenges in Acquisitions
Strategy CEO Phong Le added that mergers and acquisitions involving software companies prove very difficult to execute successfully. He stated there is always something hidden behind what buyers think they are purchasing. Le applied the same reasoning to the acquisition of Bitcoin treasury companies, suggesting similar complexity and risk factors exist in such transactions.
Transparency and Bitcoin Strategy
Saylor explained that Strategy's transparent Bitcoin purchasing strategy allows the public to calculate instantly whether transactions are accretive or dilutive. He claimed the company's purchases have generally proven accretive. The chairman argued that Strategy's business model offers a significant advantage due to its transparency, predictability, and clarity.
Le suggested it would be appropriate for Bitcoin to eventually be treated differently as a capital asset to improve the company's credit rating. The CEO emphasized Strategy's focus on high-speed, transparent digital transactions and Bitcoin accumulation. This approach makes the business model easier for equity and credit analysts to evaluate and assess.
The company's strategy centers on maintaining clear, predictable operations that facilitate analysis by financial professionals. Saylor emphasized this transparency as a core competitive advantage that differentiates Strategy from companies pursuing more complex business models involving acquisitions or operational diversification beyond Bitcoin treasury management.