Glassnode analyst James Check believes that the model of using bitcoins as a corporate reserve may lose popularity much faster than most market participants expect. In his opinion, only a limited number of companies will be able to implement this strategy in the long term.
This is reported by Finway
Why the Lifecycle of the Strategy is Shortening
James Check emphasizes that the “lifecycle” of the bitcoin-based corporate reserve strategy is much shorter than investors assume. For many new market participants, this model may already have become irrelevant. According to the analyst, the market is transitioning to a stage where companies need to demonstrate the effectiveness of their own approaches to storing digital assets.
“It’s not about competing over who has more. It’s about how serious and sustainable your product and strategy are to support accumulation,” Check noted.
Long-Term Prospects and Challenges for Companies
In the analyst’s view, it is becoming increasingly difficult for casual players to maintain premium status without clear positioning and a long-term strategy. James Check also points out the limited opportunities for retail investors, who often buy shares of companies with bitcoin reserves. At the same time, giants like MicroStrategy have a significantly greater buffer compared to lesser-known firms that hold small amounts of the first cryptocurrency.
Check emphasized that, in his opinion, only a few companies will be able to implement this strategy long enough to successfully weather periods of instability in the crypto market.