A Microstrategy to Market Starbucks, Nike if Bitcoin Reaches $138,000
MicroStrategy (MSTR) stock is up 546% year to date, with a market cap of $99.4 billion. The company added 249,850 BTC by 2024, bringing its total to 439,000 BTC, and its Bitcoin (BTC) reserves are the main reason for its significant year-over-year growth.
Microstrategy Bitcoin will take on major US companies if it hits higher price targets while it is on the verge of breaking the $100 billion mark.
If BTC reaches $138,000, MicroStrategy's market cap will cover Starbucks and Nike.
With 439,000 BTC in treasury, MicroStrategy is the largest corporate owner of Bitcoin, while Marathon Digital has 40,435 BTC, a 985% increase.
Therefore, monitoring the price of BTC gives a direct view of the market potential of MSTR. Based on MicroStrategy's net asset value (NAV) worksheet, the fully diluted market cap is $114 billion and the resulting MSTR NAV is around $40 billion.
Micro Strategy NAV Worksheet. Source: X
As for MicroStrategy's BTC holdings, every time the crypto asset moves $1,000 in either direction, MSTR's market value reaches $440 million.
Starbucks' market value is $105.5 billion, while Nike's is $115 billion.
Therefore, an 11% Bitcoin rally to $118,810 would allow the microstrategy's market cap to surpass Starbucks'. A 32% increase to $140,000 per BTC puts MSTR's market cap ahead of Nike. This microstrategy assumes that it will not add to your current BTC holdings.
Related: MicroStrategy Buys 15.3K Bitcoin For $1.5B, Holdings Reach 439K BTC
If an asteroid hits the earth, the micro-strategy will fail, says the analyst
Microstrategy's Bitcoin playbook effectively involves buying Bitcoin at a higher level, where the company issues debt and uses the proceeds to buy Bitcoin, which drives up the price of BTC. The microstrategy approach has its detractors, one of whom, Chainlink advocate Zach Raines, said he was “very uncomfortable” with the company's “debt-based acquisitions.”
Source: Ki-Young Ju
However, CryptoQuant CEO Ki-Yang Ju says that microstrategy bitcoin trading will only go south if there is a natural disaster on the planet. On X-Post, Ju said:
“Microstrategy will only fail if an asteroid hits Earth. For 15 years, #Bitcoin has never fallen below the long-term whale price, which is currently at $30k.
Yang-Ju added that since MicroStrategy's “debt” is currently only $7 billion, compared to its BTC holdings of nearly $47 billion, it is not an immediate concern.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
