Bitcoin’s long-term success is still questioned to this day.
Anthony Pompliano discussed it alongside the CEO of Strategy, formerly MicroStrategy, Phong Le, and David Bailey, the CEO and chairman of KindlyMD, during Bitcoin Investor Week in New York.
They outlined what Bitcoin is [BTC] needed to succeed and projected the potential outcomes for Bitcoin Digital Asset Treasuries (DATs) soaring story. Yet their long-term views remained optimistic.
Strategy’s Three Phases of Buying BTC
Looking at Strategy [MSTR]BTC’s first public holding company, played a significant role in introducing crypto to Wall Street and the traditional financial sector.
First, Strategy invested approximately $600 million in BTC. In the second phase, MSTR rose, with leverage coming mainly through convertible bonds, which reached $12 billion.
However, the CEO said this move is not suitable for the long term.
The last phase was in 2025, when they raised $7 billion when they became a digital lending company issuing perpetual preferred bonds, which are equity instruments.
For example, Stretch (STRC) traded on Nasdaq with an average volume of $150 million per day.
About this, Phong Le said:
“If you want to match something like Bitcoin, which has a long duration and high volatility, we need to offer a low-volatility, short-duration product. That was STRC.”
These products accelerated BTC adoption because they protected BTC investors who couldn’t stomach the volatility but wanted BTC’s underlying returns.
The CEO still advised that those wanting to buy BTC should have a long term, around 4 to 5 years. When asked when they sold their Bitcoins, Phong said:
“We are not selling our Bitcoin… but if Bitcoin trades at $8,000 for five years.”
What Bitcoin Needs to Be Successful
The question of Bitcoin’s long-term success depended on the people and not on the government itself. Related to this, David Bailey was optimistic about Bitcoin, saying:
“If we really want progress to continue, we need more people owning Bitcoin every year. And that is inevitable… And Bitcoin will be successful with or without the government.”
The governments have seen it in their own interest to work with Bitcoin. The US government, for example moved 0.3346 BTC worth $22,650, which could just be routine portfolio management or test flows.
Projections on Bitcoin DATs
While both Phong and Bailey agreed it was still early for Bitcoin, their forecasts for DATs were divided.
According to Phong Le, the more DATs there were, the better it was for Bitcoin. Bailey argued that these DATs still needed inherent strengths like those of Strategy to be successful.
While noting that there was a lot of capital in DATs, Bailey said:
“I think half of these companies will disappear in the next 18 months. There will be a lot of consolidation.”
Speaking of consolidation, BTCs had just broken above the range between $62,960 and $70,900. It rose about 7% in 24 hours, and maintaining this momentum could push the price above $78,800.
Source: BTC/USD on TradingView
Final summary
- Bitcoin Investor Week documents Strategy’s role in introducing Bitcoin to traditional markets.
- Bailey says Bitcoin needs the people and voters to succeed, not the government, but he predicts half of DATs could die within 18 months.