MicroStrategy’s (MSTR) stock has surged by an impressive 546% this year, pushing its market capitalization to $99.4 billion. A key driver behind this dramatic rise is the company’s substantial Bitcoin holdings. In 2024 alone, MicroStrategy added 249,850 BTC, bringing its total Bitcoin stash to 439,000 BTC. This growing reserve has played a pivotal role in boosting its stock price.
As MicroStrategy’s market cap nears the $100 billion mark, the company is on the cusp of surpassing some major American brands, contingent upon Bitcoin continuing its upward trajectory.
MicroStrategy Could Overtake Starbucks and Nike with Bitcoin at $138K
Holding 439,000 BTC, MicroStrategy remains the largest corporate Bitcoin holder, far outpacing Marathon Digital’s 40,435 BTC. Given this vast reserve, the price of Bitcoin directly impacts MicroStrategy’s market cap. According to the company’s net asset value (NAV) report, its fully diluted market cap stands at $114 billion, with an NAV of about $40 billion.
Each time Bitcoin’s price fluctuates by $1,000, MicroStrategy’s market cap changes by roughly $440 million. As of now, Starbucks is valued at $105.5 billion, while Nike’s market cap is $115 billion.
A modest 11% increase in Bitcoin’s price to $118,810 would push MicroStrategy’s valuation past Starbucks. If Bitcoin reaches $140,000, MicroStrategy’s market cap would exceed Nike’s, assuming no additional Bitcoin purchases by the company.
MicroStrategy’s Bitcoin Strategy Faces Criticism, But CEO Stays Confident
MicroStrategy’s approach involves leveraging debt to purchase Bitcoin at higher price points, a strategy that some critics have questioned. Zach Rynes, an advocate for Chainlink, expressed concerns over the company’s debt-driven Bitcoin acquisitions, calling it “deeply uncomfortable.”
However, Ki-Young Ju, CEO of CryptoQuant, offered a more optimistic view. He believes MicroStrategy’s Bitcoin strategy will only falter in the event of a catastrophic global event, like an asteroid impact. In a post on X (formerly Twitter), Ju pointed out, “For 15 years, Bitcoin has never dropped below the cost basis of long-term holders, which is around $30K.”
Ju also reassured investors about MicroStrategy’s debt, noting that the company’s liabilities are relatively manageable at $7 billion, especially considering its Bitcoin holdings are valued at approximately $47 billion.
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