In a press release on X, Ki Younger Ju, CEO of CryptoQuant, a number one on-chain analytics agency, offered a stark evaluation of MicroStrategy’s monetary well being in relation to its Bitcoin investments.
Can MicroStrategy Go Bankrupt?
Ju said, “MicroStrategy solely goes bankrupt if an asteroid hits Earth. For 15 years, Bitcoin has by no means dropped beneath the price foundation of long-term whales, which at present stands at $30K. MSTR debt is $7B and its BTC holdings are value $46B. Primarily based on BTC alone, the liq value is $16.5K.” He additional simplified his evaluation by urging, “I do know calculating the liquidation value appears pointless at this level, however man, simply attempt to maintain it easy”.
This bullish perspective on MicroStrategy’s solvency comes amid contrasting views, significantly from notable Bitcoin critic Peter Schiff, who in an interview expressed a dire outlook: “I imply, finally, I feel MicroStrategy goes bankrupt. I feel finally the Bitcoin goes to crash and the collectors are going to finish up with the corporate. I imply, that’s what I feel goes to occur on the finish of the day”.
MicroStrategy’s latest monetary strikes and market efficiency have been important. Final week, the corporate was added to the celebrated Nasdaq-100 index, which might doubtlessly appeal to extra funding and improve its market credibility.
Following the inclusion, MicroStrategy introduced on December 16, 2024, that it had additional expanded its Bitcoin reserves by buying an extra 15,350 BTC at roughly $100,386 per Bitcoin, bringing its complete holdings to 439,000 BTC. All Bitcoins have been acquired for about $27.1 billion at a mean value of $61,725 per BTC.
On the finish of October, the corporate introduced an aggressive Bitcoin acquisition technique, named the “21/21 plan,” which entails elevating $21 billion by means of fairness and fixed-income securities particularly to extend its Bitcoin reserves. Because the announcement of this plan, MicroStrategy has been persistently shopping for Bitcoin on a weekly foundation.
Charles Edwards, CEO of Capriole Investments, commented on the potential acceleration of this technique, noting, “We’re about to see a giant bounce in Saylor’s Bitcoin shopping for. Being NASDAQ 100 listed offers tons of credence for cap elevating. My guess: MSTR 21/21 plan full inside 3 months”.
The inclusion within the Nasdaq-100 index may also gasoline a optimistic suggestions loop for each MicroStrategy and Bitcoin, as described by macro analyst Alex Krüger on X, “Microstrategy included within the Nasdaq. So individuals have to purchase MSTR as a result of it’s within the index which implies Saylor can promote extra shares and convert to purchase extra Bitcoin which pushes BTC up after which MSTR goes up which implies you need to purchase extra shares to match the index, rinse and repeat. Bitcoin to infinity”.
At press time, BTC traded at $107,226.
Featured picture from YouTube, chart from TradingView.com