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Cryptopolitan 2024-12-17 22:20:28

Could MicroStrategy go bankrupt if Bitcoin drops?

MicroStrategy holds over 439,000 Bitcoins worth $46 billion. Should the price of BTC plunge, CryptoQuant CEO Ki Young Ju believes the firm may not face bankruptcy, stating it will only happen “if an asteroid hits Earth.” The company continues to profit, with a 72.4% yield this year and a stock surge of 540% in 2024. Led by Michael Saylor, MicroStrategy, following a recent 15,350 BTC purchase, raised its Bitcoin treasury to a total of 439,000 BTC, which accounts for over 2% of BTC’s total supply. With the firm’s growing position, there are now rising concerns that MicroStrategy could be forced to go bankrupt and liquidate its holdings should Bitcoin suffer a major drop. Ki Young Ju’s perspective Ki Young Ju explained that MicroStrategy could only face bankruptcy if Bitcoin’s price falls to $16,500. He pointed out that the company is holding around $46 billion worth of Bitcoin, but there is only $7 billion of debt. The CryptoQuant CEO also mentioned that Bitcoin has never dropped below $30,000 for long-term holders like they never felt that way unless there would be an unexpected drop. He stated, “MicroStrategy only goes bankrupt if an asteroid hits Earth,” not bothering about a Bitcoin crash to $16,000. 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. $MSTR debt is $7B and its $BTC holdings are worth $46B. Based on BTC alone, the liq price is $16.5K. pic.twitter.com/cTwwTGYif4 — Ki Young Ju (@ki_young_ju) December 17, 2024 He believes that Bitcoin has become more stable and irreplaceable because more institutions are getting involved. This support from institutions makes Bitcoin less likely to experience a huge price drop and also it has strong future stability. On the other hand, critics like Peter Schiff believe MicroStrategy could go bankrupt if Bitcoin crashes, as the company’s huge Bitcoin holdings are a risky gamble. He thinks a market downturn could cause major financial problems. Despite this, MicroStrategy is still aggressively buying more Bitcoin. Recently, it bought 15,350 BTC , bringing its total holdings to 439,000 BTC, worth about $27.1 billion at an average price of $61,725 per Bitcoin. The company is still committed to its Bitcoin strategy, despite the criticisms. MSTR joins Nasdaq-100 MicroStrategy recently made it to the Nasdaq-100, which could lead to increased investment and easier access to capital. The company’s confidence in Bitcoin’s future is clear from its ongoing investment strategy, including the “21/21 plan” to raise $21 billion to acquire more Bitcoin. MicroStrategy’s Bitcoin operations have produced a 72.4% yield this year. This has resulted in a profit of 136,965 BTC, worth $14.66 billion at the current price of over $107,000 per coin. Additionally, the company’s stock has surged by more than 540% in 2024, showing strong investor confidence in its Bitcoin strategy. Land a High-Paying Web3 Job in 90 Days: The Ultimate Roadmap

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