Bitcoin’s long-term success is still being questioned to date.
Anthony Pompliano discussed it alongside the CEO of Strategy, formerly MicroStrategy, Phong Le, and David Bailey, who is the CEO and chairman of KindlyMD, at Bitcoin Investor Week in New York.
They outlined what Bitcoin [BTC] needed to succeed and projected the potential outcomes for the rapidly rising narrative of Bitcoin Digital Asset Treasuries (DATs). Still, their long-term views remained optimistic.
Strategy’s three phases of buying BTC
Looking at Strategy [MSTR], which is the first BTC public holding company, it played a considerable role in graduating the crypto into Wall Street and traditional finance.
First, Strategy invested about $600 million in BTC. In the second phase, MSTR leveled up with the leverage coming primarily through convertible notes, which hit $12 billion.
However, the CEO said the move was not right for the long term.
Its latest phase was in 2025, when they raised $7 billion as they became a digital credit company issuing perpetual preferreds, which are equity instruments.
For instance, Stretch (STRC) traded on Nasdaq with an average volume of $150 million per day.
Regarding this, Phong Le said,
“If you want to match something like Bitcoin which has long duration high volatily, we need to provide a short duration low volatility product. That was STRC is.”
These products were accelerating BTC adoption as they shielded BTC investors who cannot stomach its volatility but wanted BTC’s underlying returns.
The CEO still recommended that those who wanted to buy BTC needed to have a long duration, like 4 to 5 years or so. Asked when they were selling their Bitcoins, Phong said,
“We are not selling our Bitcoin…but if Bitcoin trades at $8,000 for 5 years straight.”
What Bitcoin needs to be successful
The question of Bitcoin’s long-term success depended on the people rather than the government itself. In regard to this, David Bailey was bullish on Bitcoin, saying,
“If we really want the progress to continue, we need more people to own Bitcoin every year. And it’s just an inevitability…And Bitcoin will be successful with or without the government.”
The governments have seen it in their best interest to work with Bitcoin. For instance, the U.S. government moved 0.3346 BTC valued at $22,650, which could just be routine wallet management or testing flows.
Projections on Bitcoin DATs
While both Phong and Bailey agreed it was still early for Bitcoin, their projections for DATs were divided.
In Phong Le’s view, the more DATs there were, the better it was for Bitcoin. Bailey argued that still, these DATs needed inherent strengths like those of Strategy to be successful.
While he noted there was a lot of capital in DATs, Bailey said,
“I think half of those companies are going to disappear over the next 18 months. There is going to be a lot of consolidation that’s going to occur.”
Speaking of consolidation, BTC’s had just broken above the range between $62,960 and $70,900. It was up about 7% in 24 hours, and maintaining this momentum could push the price past $78,800.
Source: BTC/USD on TradingView
Final Summary
- Bitcoin Investor Week captures Strategy’s role in graduating Bitcoin to traditional markets.
- Bailey says that Bitcoin needs the people and voters to succeed, not the government, but he projects that half of DATs could die in 18 months.