Technological billionaires Peter Thiel and Michael Saylor are establishing treasures of the cryptographic company, but some financial observers point out that their strategies could present a significant risk.
Both Thiel and Saylor have poured substantial capital into cryptocurrencies through their respective investment companies and vehicles: Saylor, with the frequent Bitcoin (BTC) of their strategy of their software firm, and Thiel, through risk capital investments in cryptographic companies and its exchange, Bullish, which was made public in early August.
Each not only seeks to expand their holdings, but also how the cryptocurrency industry is formed and regulated. But there are still significant differences in their respective strategies and perspectives regarding cryptography, and companies that decided to form cryptographic treasures could be inviting a “spiral of death” when prices crash.
Thiel and Saylor have different cryptographic investment strategies
Michael Saylor, co -founder and software president Company Strategy (previously Microstrategy), has created waves in the financial world through what has been called an “infinite failure.”
The “glitch” refers to the strategy approach to buy Bitcoin, in which it issues shares or values linked to capital to buy Bitcoin and then has the asset in its balance sheet.
Normally, issuing more capital would devalue the price of the action, but Bitcoin’s great purchases increase the price of BTC, increasing the assessment of the strategy and allowing it to issue more debt.
And the cycle continues.
The strategy has been so successful for the strategy that a large number of imitators have won. The term “Bitcoin Treasury Company” is becoming increasingly common in the financial world, with 174 public companies that have Bitcoin, according to Bitcintreasurys.net.
Saylor’s cryptographic strategy is concentrated only in Bitcoin, namely, accumulating most of the possible cryptocurrency, and contains an almost metaphysical characterization of the asset.
In 2020, he wrote that Bitcoin “is a swarm of cybernetics to cybernetics that serve the goddess of wisdom, feeding on the fire of truth, growing exponentially increasingly intelligent, faster and faster behind an encrypted energy wall.”
In a speech at the Bitcoin Policy Institute in March, Saylor said Bitcoin was a “Newtonian network”, whose control was necessary for the United States to maintain global power.
He also suggested that an aggressive accumulation strategy of Bitcoin of the United States government could erase the national debt and suggested in other interviews that a National Bitcoin reserve is “manifest destination for the United States.”
Thiel’s strategy, although less innovative, is more diverse. In February 2025, Founders Fund, a risk capital firm co -founded by Peter Thiel in 2005, which supported companies such as Spacex, Palantir and Facebook, invested $ 100 million in Bitcoin and another $ 100 million in Ethher (ETH).
What encryption investment strategy will prove to be more effective in the long term:
A) Michael Saylor’s Bitcoin only approach
B) Peter Thiel diversified strategyShare your thoughts in comments 👇👇👇
– Cointelegraph (@Cointelegraph) August 26, 2025
The Fund Fund has 7.5% of Ethzilla, a biotechnology firm that became an Ether investment vehicle, as well as a 9.1% participation in Bitmine Immersion Technologies, which Founders founded helped to collect $ 250 million in ETH.
Thiel has also supported an exchange of cryptocurrencies, Bullish, which was made public on August 19, receiving an assessment of $ 1.15 billion established in several stables, including USDC (USDC) and PayPal USD (Pyusd).
It is clearly invested in cryptographic space and is optimistic about its growth, but Thiel has also shown a more measured skepticism, particularly with respect to Bitcoin. Far from the “Swarm of Cyber Hornets of Saylor that serves the goddess of wisdom,” Thiel asked previously if the asset is not at least “partly a Chinese financial weapon against the United States.”
“Threatens the Fiat money, but especially the US dollar threatens, and China wants to do things to weaken it so that China is a long bitcoin, and from a geopolitical perspective, the United States should ask some more difficult questions about how exactly that works.”
In summary, Thiel’s approach offers a more cautious and diversified exhibition to cryptocurrencies, while Saylor takes an aggressive and direct strategy of direct exposure, everything in Bitcoin.
Bitcoin Treasury Companies on The Rise: Is it a bubble?
The cryptographic industry can soon find out which strategy will win. In recent weeks, Bitcoin’s treasure model defended by Saylor has been losing steam.
The thesis of the “raising capital, converting Bitcoin and waiting for appreciation” model can be quite simple, but leaves the company vulnerable to the notorious volatility of Bitcoins markets.
If the BTC price is submerged too close to Bitcoin’s metric per share, or net asset value (NAV), of the shares of a company, that action loses the assessment buffer that was supposed to raise the price of its shares.
This can lead to an alleged “death spiral” in which, as the market capital of a company is reduced, also access to capital. With anyone to buy the company’s assets or any lender, the company cannot expand its holdings or refinance the existing debt. If a mature loan or margin call occurs, forced settlements will follow.
The strategy ship currently records 1.4 times the price of its action. It was almost double the price of the shares in February, when Finance Professor of the University Carnegie Mellon, Bryan Routledge, told Fortune: “There is no rational explanation for that difference.”
Strategy investors, therefore, face the risk not only of fluctuations in the price of Bitcoin, but “what is promoting this difference between the value of net assets and the price of the shares … that additional component is an additional source of risk.”
In recent weeks, the price of the strategy shares has collapsed together with BTC, but Saylor BTC’s purchase executions continue incessantly. The company bought 3,081 BTC for $ 356.9 million during the week that ended on August 24.
Market conditions can be relatively stable for now, and White House policy remains firmly pro-Christo. But cryptographic winters always come, and when they do, the market will see what strategy survives.
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