David Edwards
If Bitcoin (BTC) rises above $138,000, MicroStrategy Inc. (MSTR) is poised to overtake the market values of industry titans Nike and Starbucks. Due to its substantial Bitcoin reserves, which currently stand at 439,000 BTC, the business intelligence organization, which is well-known for its aggressive Bitcoin accumulation, has experienced a 546% increase in stock price year-to-date.
With a market valuation of $99.4 billion, MicroStrategy is on track to surpass $100 billion, establishing its leadership in the corporate area supported by cryptocurrencies.
MicroStrategy’s valuation is determined by changes in the price of bitcoin.
The market capitalization of MicroStrategy is closely correlated with changes in the price of Bitcoin. The company’s market capitalization increases by almost $440 million for every $1,000 increase in the value of Bitcoin. The company’s fully diluted market capitalization is $114 billion, and its net asset value (NAV) is around $40 billion, based on its estimations.
This is how MicroStrategy compares to Nike and Starbucks:
Starbucks: $105.5 billion is its market capitalization.
Nike: $115 billion in market capitalization.
The market capitalization of MicroStrategy would surpass that of Starbucks if Bitcoin rose by just 11% to $118,810. If no more Bitcoin purchases are made, its worth would surpass Nike with a 32% increase to $140,000.
High Risk, High Reward:
MicroStrategy, the biggest business Bitcoin owner, uses debt as leverage to buy Bitcoin. Both praise and criticism have been directed at this strategy. Bitcoin’s historical endurance is emphasized by proponents like Ki-Young Ju, CEO of CryptoQuant, who notes that long-term whales have maintained a cost basis above $30,000.
Chainlink supporter Zach Rynes is among the skeptics who voice concerns about the debt-driven acquisitions and caution about the dangers associated with MicroStrategy’s dependence on Bitcoin’s growth.
“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.”
What Does MicroStrategy Have in Store?
The future of MicroStrategy is still dependent on how well Bitcoin performs. The corporation continues to influence stories about institutional adoption and the future of the cryptocurrency industry, with its holdings accounting for about 1% of all Bitcoins.
