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 company’s financial stability linked to the bitcoin price have emerged, particularly from CryptoQuant CEO Ki Young Joo. Ju cautioned that while facing the possibility of microstrategy Bankruptcy Not impossible, it would require an unlikely event like “an asteroid hitting Earth”.
Microstrategy financial risks such as the price of Bitcoin is 30,000 dollars
Recently post On X (formerly Twitter), Ju elaborated on the matter, stating that BTC has maintained a consistent price floor, never falling below the long-term cost basis of major holders, which is currently stands at $30,000. He noted:
MicroStrategy’s debt is $7 billion, while its bitcoin holdings are valued at $46 billion. Based on Bitcoin alone, the liquidation price would be around $16,500. The bottom of the last cycle was at $16,000. Talking about a drop to that level now feels as improbable as predicting $3,000 when Bitcoin was at $60,000.
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In terms of current price movements, cryptoquant noted That BTC’s price rally to a new all-time high above $108,000 on Tuesday was fueled by short liquidations of about $151 million over the past 12 hours,
The firm revealed that the bitcoin-to-gold ratio also reached an all-time high during this surge, reinforcing bitcoin’s reputation as “digital gold” and its value relative to traditional gold assets. Its role as a priority reservoir was confirmed.
Additionally, the recent inclusion of MicroStrategy in the Nasdaq 100 has bolstered market sentiment. The seller hinted at making more bitcoin purchases, even Spot prices Over $100,000.
CryptoQuant claims that this involvement could lead to passive fund flows into MicroStrategy shares, giving the company greater access to capital For its Bitcoin acquisition.
BTC buys for sixth consecutive week
the cellar was told On Monday, MicroStrategy bought the market’s leading crypto for the sixth week in a row. The transaction adds to the firm’s substantial bitcoin portfolio, which currently stands at 439,000 BTC, acquired for approximately $27.1 billion at an average price of $61,725 per coin.
Additionally, Saylor revealed that the firm’s Bitcoin assets have generated significant gains with a 46.4% increase quarter-to-date (QTD) and a 72.4% gain year-to-date (YTD).
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CryptoQuant also noted that this week’s central bank meetings appear to be secondary to market sentiment around Bitcoin. While that remains highly unlikely, a “very dovish stance” from the Federal Reserve and Chairman Jerome Powell could provide the necessary speed BTC to grow even more.
At the time of writing, BTC is trading at $104,140, down 2.6% on the 24-hour timeframe but still up 6.5% on the week.
Featured image from DALL-E, chart from TradingView.com
