MicroStrategy, the business intelligence firm co-founded by Bitcoin bull Michael Saylor, has significantly increased its Bitcoin acquisition strategy, surpassing 400,000 BTC in holdings.
However, concerns about the financial stability of the company linked to the price of Bitcoin have emerged, especially from Ki Young Ju, CEO of CryptoQuant. Ju cautioned, though MicroStrategy expected bankruptcy It is not impossible, it would require an event as unlikely as an “asteroid hitting the Earth. “
MicroStrategy Financial Risks As Bitcoin Price Floor Holds At $30,000
In recent times mail on X (formerly Twitter), Ju analyzed the issue by saying that BTC has maintained a constant price floor, never falling below the long-term cost base of major holders, which is currently at $30,000. He noted:
MicroStrategy's debt is $7 billion, and its Bitcoin holdings are valued at $46 billion. Based on Bitcoin alone, the liquid price would be around $16,500. The minimum stock dividend was $16,000. Talking about a drop to that level now feels as implausible as predicting $3,000 when Bitcoin was at $60,000.
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In the context of current price trends, CryptoQuant was noted that the price surge towards BTC's new all-time high above $108,000 on Tuesday was fueled by short liquidations of around $151 million over the past 12 hours,
The company announced that the Bitcoin-to-gold ratio reached an all-time high during this boom, cementing Bitcoin's reputation as “digital gold” and cementing its role as a store of value. preferred compared to traditional gold assets.
In addition, the recent inclusion of MicroStrategy in the Nasdaq 100 has strengthened market sentiment. Saylor mentioned further Bitcoin purchases, even with spot prices exceeds $100,000.
CryptoQuant speculates that this acquisition could lead to passive asset inflows into MicroStrategy shares, giving the company greater access to capital to buy Bitcoin.
BTC Purchases for Sixth Consecutive Week
Saylor said on Monday that Microstrategy has bought the market's top crypto for the sixth week in a row. This transaction adds to the company's large Bitcoin portfolio, which currently stands at 439,000 BTC, acquired for approximately $27.1 billion at an average price of $61,725 per coin.
In addition, Saylor revealed that the company's Bitcoin assets have produced significant gains, with a 46.4% quarter-to-date (QTD) gain and a 72.4% year-to-date (YTD) gain.
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CryptoQuant also noted that this week's central bank meetings appear to be secondary to market sentiment around Bitcoin. Although highly unlikely, an “extraordinarily bold stance” from the Federal Reserve and Chairman Jerome Powell could provide the necessary space. momentum to increase BTC even further.
At the time of writing, BTC is trading at $104,140, down 2.6% on the 24-hour time frame but still up 6.5% on the week.
Featured image from DALL-E, chart from TradingView.com
