MicroStrategy (MSTR) stock is up 546% this year and now has a market cap of $99.4 billion. Bitcoin (BTC) holdings are the main reason for the significant year-to-date returns, as the organization added 249,850 BTC in 2024, bringing its total tally to 439,000 BTC.
With the market capitalization on the verge of breaking the $100 billion threshold, MicroStrategy will acquire a major U.S. company if Bitcoin hits its higher price target.
If BTC reaches $138,000, MicroStrategy’s market capitalization will surpass Starbucks and Nike.
With 439,000 BTC in its treasury, MicroStrategy is the largest corporate holder of Bitcoin, surpassing Marathon Digital’s 40,435 BTC by 985%.
Therefore, monitoring the price of BTC provides a direct projection of MSTR’s market capitalization potential. According to MicroStrategy’s net asset value (NAV) worksheet, the fully diluted market capitalization is $114 billion, with a derived MSTR NAV of approximately $40 billion.
MicroStrategy NAV Worksheet. Source: X
When it comes to MicroStrategy’s BTC holdings, for every $1,000 the crypto asset moves in either direction, MSTR’s market capitalization increases by about $440 million.
Currently, Starbucks’ market capitalization is $105.5 billion and Nike’s is $115 billion.
So, if Bitcoin rises 11% to $118,810, MicroStrategy’s market capitalization could surpass Starbucks. A 32% rise to $140,000 per BTC would put MSTR’s market capitalization ahead of Nike. This assumes that MicroStrategy does not add to your current BTC holdings..
relevant: MicroStrategy purchases 15.3K Bitcoin for $1.5 billion, bringing its holdings to 439K BTC.
If an asteroid hits Earth, MicroStrategy will go bankrupt, analyst says.
MicroStrategy’s Bitcoin playbook effectively entails the company issuing debt and using the proceeds to purchase higher levels of Bitcoin, driving up the price of BTC. MicroStrategy’s methods have their detractors. One of them is Chainlink advocate Zach Rynes. He said he was “very uncomfortable” with the “debt-based acquisition” of the organization.
source: Joo Ki-young
However, CryptoQuant CEO Joo Ki-Young Ki said that MicroStrategy’s Bitcoin trading would only go south if a natural disaster occurred on Earth. In the X post, Ju said:
“MicroStrategy will only go bankrupt if an asteroid hits Earth. In 15 years #Bitcoin has never fallen below the long-term whale’s cost basis, which currently stands at $30,000.”
Young-Ju added that this is not an immediate issue as MicroStrategy’s “debt” is currently only $7 billion compared to its BTC holdings, which are worth about $47 billion.
This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.