Originally published on: December 17, 2024
MicroStrategy is on the rise, with their stock prices up an impressive 546% this year, boasting a market cap of $99.4 billion. Their strategic move of adding 249,850 BTC in 2024, bringing their total to 439,000 BTC, has been a key driver of their success in 2024.
As MicroStrategy inches closer to the $100 billion mark in market cap, they are poised to outpace major American companies if Bitcoin reaches higher price targets.
With a staggering 439,000 BTC in their treasury, MicroStrategy holds the title of the largest corporate holder of Bitcoin, outshining Marathon Digital’s tally by nearly 985%.
The correlation between Bitcoin’s price and MicroStrategy’s market cap is undeniable. For every $1,000 movement in Bitcoin, MicroStrategy’s market cap sees a corresponding shift of approximately $440 million.
This puts MicroStrategy in a position to surpass Starbucks’ market cap of $105.5 billion with just an 11% Bitcoin rally to $118,810. To outpace Nike and its market cap of $115 billion, a 32% increase to $140,000 per BTC would be required.
MicroStrategy’s unique Bitcoin playbook involves strategic maneuvers like issuing debt to buy Bitcoin, potentially driving up the BTC price. Despite some detractors, CEO Ki-Young Ju of CryptoQuant remains confident in MicroStrategy’s approach, asserting that only a catastrophic event could derail their Bitcoin trade.
With a debt of $7 billion and Bitcoin holdings valued at around $47 billion, MicroStrategy remains a force to be reckoned with in the world of cryptocurrency and finance.
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Please note that this article is for informational purposes only and should not be taken as investment advice. Readers are encouraged to conduct their own research before making any financial decisions.