Bitcoin News Today: Bitcoin Rivals Rise, Strategy Sticks to Organic Growth

Michael Saylor's Strategy Inc. (NASDAQ:MSTR) reaffirmed its focus on organic growth over mergers and acquisitions during its third-quarter 2025 earnings call, signaling a strategic pivot as the Bitcoin treasury sector faces intensifying competition. The company, which holds the largest corporate Bitcoin reserve of 640,808 coins, reported a net profit of $2.8 billion for the period, a stark turnaround from a $340 million loss in the same period last year, according to a Beincrypto report. Saylor emphasized that while the firm is not entirely ruling out M&A activity, it remains wary of the uncertainties and elongated timelines associated with such deals, as detailed in a Cointelegraph interview.

The CEO's comments come as a growing number of companies adopt Bitcoin treasury strategies, diluting Strategy's once-dominant market position. Hyperscale Data, for instance, announced its Bitcoin holdings had reached $68.8 million, or 50% of its market capitalization, while ZOOZ Strategy added 94 bitcoins for ~$10 million, expanding its treasury to 1,036 coins, according to Seeking Alpha. Hyperscale’s update was covered by Investing.com, and meanwhile Metaplanet secured a $500 million Bitcoin-backed credit facility to fund further BTC acquisitions, as reported in a Metaplanet credit facility story.

Saylor's caution is rooted in the volatile nature of the sector. "An idea that looks good when you start might not still be a good idea six months later," he stated, citing the six-to-twelve-month deal cycles typical in M&A. This hesitance contrasts with some analysts' predictions that consolidation will become inevitable as firms compete to scale their Bitcoin holdings. Strategy's treasury model—buying BTC with equity raises and reinvesting gains—has proven lucrative, with the company's stock trading at a 1.32x multiple of its net asset value (mNAV) as of October 26, down from a peak of 10.33x in February, according to CryptoNews.

The firm's financial performance underscores its reliance on Bitcoin's price trajectory. With BTC trading at ~$107,833, Strategy's holdings are valued at $73.2 billion, compared to a cost basis of $47.44 billion. This has enabled the company to maintain a "self-reinforcing cycle" of capital raising and reinvestment, though critics argue the model's sustainability depends on continued BTC appreciation. An S&P assignment of a junk 'B-' rating to Strategy highlights risks tied to its heavy Bitcoin concentration and $8.2 billion in convertible debt, as covered in a Seeking Alpha report.

Despite these challenges, Strategy remains bullish on its strategy. Saylor reiterated the firm's commitment to buying Bitcoin, improving its balance sheet, and communicating its value to investors. The company also reaffirmed 2025 guidance of $34 billion in operating income and $20 billion in Bitcoin gains. However, with rivals like Strive—recently acquired by Semler Scientific—expanding their BTC reserves, the pressure to differentiate is mounting.

As the sector evolves, Strategy's ability to maintain its premium valuation will hinge on its execution of capital-efficient Bitcoin purchases and its capacity to navigate regulatory and market headwinds. For now, Saylor's focus remains on refining the core model rather than pursuing external growth.