CryptoQuant CEO Ki Young Ju has revealed that there’s just one approach that MicroStrategy’s ‘Bitcoin Strategy’ might result in chapter for the software program firm. The firm’s BTC technique has led to large success regardless of criticisms about the way it accumulates extra Bitcoin.
How MicroStrategy’s Bitcoin Strategy Could Lead To Bankruptcy
In an X submit, Ki Young Ju indicated that MicroStrategy’s Bitcoin Strategy might solely result in chapter if the Bitcoin price drops to $16,500. He defined that MSTR has $7 billion in debt and $46 billion in BTC holdings.
Therefore, based mostly on Bitcoin alone, the corporate’s liquidation value is $16,500. The CryptoQuant CEO additionally defined why it’s virtually inconceivable for the corporate to go bankrupt, stating that this might solely occur “if an asteroid hits Earth.”
Ki Young Ju talked about that since its inception, Bitcoin has by no means dropped under the fee foundation of long-term whales, which presently stands at $30,000. In one other X post, the crypto CEO famous that $16,000 was the final cycle’s backside.
In this regard, Ki Young Ju believes that speaking about this value goal is like alluding to the $3,000 value stage when the Bitcoin value hit $60,000. Basically, the crypto CEO is assured that the flagship crypto won’t ever contact the $16,000 value stage once more. As such, he remarked that BTC dropped to $16,000 once more after all of the institutional adoption, ETFs, and MSTR shopping for, it’s as dangerous as an asteroid hitting Earth.
MicroStrategy additionally appears to be assured that the Bitcoin value would by no means drop to such a stage because it has continued to build up extra BTC regardless of criticisms. The software program firm just lately acquired 15,350 BTC for $1.5 billion, bringing its complete Bitcoin holdings to 439,000 BTC.
Saylor Highlights Company’s Success
In an X submit, MicroStrategy’s co-founder additionally highlighted his firm’s success due to its Bitcoin Strategy. Saylor talked about that MSTR treasury operations have delivered a BTC yield of 72.4% year-to-date (YTD).
Furthermore, this has led to a web good thing about 136,965 BTC to the corporate’s shareholders. At $107,000 per BTC, these Bitcoin earnings equate to round $14.66 billion for the yr. These shareholders have additionally witnessed a big improve within the worth of their MSTR shareholdings as MicroStaretgy’s inventory is up over 540% YTD.
Saylor continues to advocate for different firms and even governments to undertake Bitcoin. Recently, he laid a framework for the US to pay off its $36 trillion debt with Bitcoin.
Boluwatife Adeyemi
Boluwatife Adeyemi is a well-experienced crypto information author and editor who has lined subjects that lower throughout DeFi, NFTs, sensible contracts, and blockchain interoperability, amongst others. Boluwatife has a knack for simplifying probably the most technical ideas and making it straightforward for crypto newbies to know. Away from writing, He is an avid basketball lover and a part-time degen.
Disclaimer: The introduced content material might embrace the non-public opinion of the writer and is topic to market situation. Do your market analysis earlier than investing in cryptocurrencies. The writer or the publication doesn’t maintain any accountability to your private monetary loss.
