As a researcher with a background in finance and a keen interest in cryptocurrencies, I find MicroStrategy’s meteoric rise this year fascinating. With my experience in analyzing market trends and company valuations, it is evident that MicroStrategy’s current market cap of $99.4 billion could potentially surpass major American companies like Starbucks and Nike if Bitcoin hits certain price targets.
This year, MicroStrategy’s (MSTR) stock values have risen an impressive 546%, currently valuing the company at a market capitalization of $99.4 billion. A significant contributor to this substantial year-over-year returns is MicroStrategy’s Bitcoin (BTC) reserve. In 2024, the company expanded its Bitcoin holdings by acquiring an additional 249,850 BTC, bringing their total Bitcoins to a staggering 439,000.
If Bitcoin reaches higher price goals, MicroStrategy, with a market value almost touching the $100 billion mark, could potentially acquire significant American businesses.
MicroStrategy’s market cap will eclipse Starbucks and Nike if BTC hits $138K
Among corporations, MicroStrategy holds the most Bitcoin at approximately 439,000 coins, far exceeding Marathon Digital’s holdings of around 40,435 BTC by nearly 10 times.
Keeping track of Bitcoin’s price can offer a clear perspective on MicroStrategy’s potential market capitalization. Given that MicroStrategy’s fully diluted market cap stands at approximately $114 billion, according to its net asset value (NAV) worksheet, the derived value for MSTR NAV is roughly $40 billion.
In terms of MicroStrategy’s Bitcoin holdings, for every $1,000 increase or decrease in the value of Bitcoin, MicroStrategy’s market capitalization roughly increases by $440 million.
Starbucks’s current market cap is $105.5 billion, and Nike’s is $115 billion.
If Bitcoin rises by 11%, reaching approximately $118,810, MicroStrategy’s market capitalization would exceed Starbucks’. An increase of 32% to around $140,000 per BTC would push MicroStrategy beyond Nike in terms of market capitalization. However, it’s important to note that this surpassing of Nike’s market cap assumes that MicroStrategy does not purchase any additional Bitcoin holdings.
MicroStrategy will go bankrupt if an asteroid hits Earth, says analyst
In simpler terms, MicroStrategy’s strategy for investing in Bitcoin involves borrowing money to buy Bitcoin when its price is relatively high. This action of buying Bitcoin can potentially increase its market price. However, some critics like Zach Rynes, a supporter of Chainlink, have expressed discomfort with this approach as it involves taking on debt to acquire Bitcoin.
As a researcher delving into the realm of cryptocurrencies, I’ve come across Ki-Young Ju’s assertion as CEO of CryptoQuant. He posits that MicroStrategy’s Bitcoin investment could potentially face a downturn under extraordinary circumstances, namely, if a catastrophic natural event were to strike our planet.
“MicroStrategy only goes bankrupt if an asteroid hits Earth. For 15 years, #Bitcoin has never dropped below the cost basis of long-term whales, which currently stands at $30K.”
Young-Ju stated that MSTR’s current debt, amounting to just $7 billion, isn’t a pressing issue due to the significant value of its Bitcoin holdings, estimated at approximately $47 billion.
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2024-12-17 20:03