According to Cointelegraph, MicroStrategy's stock has surged by 546% this year, with its market capitalization reaching $99.4 billion. The company's substantial Bitcoin reserves, which increased by 249,850 BTC in 2024, bringing the total to 439,000 BTC, have significantly contributed to its impressive year-to-date performance.
MicroStrategy's market cap is on the verge of surpassing $100 billion, positioning it to overtake major American corporations if Bitcoin's price continues to rise. With 439,000 BTC in its treasury, MicroStrategy holds the largest corporate Bitcoin reserve, far exceeding Marathon Digital's 40,435 BTC by 985%. The company's market cap is closely tied to Bitcoin's price movements, with a $1,000 change in BTC price affecting MicroStrategy's market cap by approximately $440 million.
Currently, Starbucks has a market cap of $105.5 billion, while Nike's stands at $115 billion. A modest 11% increase in Bitcoin's price to $118,810 would allow MicroStrategy to surpass Starbucks in market valuation. A 32% rise to $140,000 per BTC would place MicroStrategy ahead of Nike, assuming no additional Bitcoin acquisitions by the company.
MicroStrategy's strategy involves acquiring Bitcoin at higher levels by issuing debt and using the proceeds to purchase more Bitcoin, which in turn boosts BTC prices. This approach has faced criticism, notably from Chainlink advocate Zach Rynes, who expressed discomfort with the company's debt-based acquisition strategy. However, CryptoQuant CEO Ki-Young Ju suggested that MicroStrategy's Bitcoin strategy would only falter in the event of a catastrophic natural disaster. Ju noted that Bitcoin has never fallen below the cost basis of long-term holders, currently at $30,000, over the past 15 years.
Ju also highlighted that MicroStrategy's debt, amounting to $7 billion, is not an immediate concern given its Bitcoin holdings are valued at approximately $47 billion. This article does not offer investment advice or recommendations. All investment and trading decisions carry risks, and readers should conduct their own research before making any decisions.
