Today, MicroStrategy (MSTR) has surpassed the $100 billion market cap to become the 93rd largest publicly traded company in the United States.
At the time of writing, MSTR has more trading volume than both stock giants Tesla and Nvidia today, and has more traditional stock traders like the Wall Street Bets community. Losing their minds.
amazing $MSTR It is the most traded stock in America today… for the better $TSLA and $ ran out crazy. It’s been years since the stock has traded for more than one of those two (maybe it actually did $GME for another to do so). It’s also double $spy! Wild times.. pic.twitter.com/bUr8nycMX3
– Eric Balchunas (@EricBalchunas) November 20, 2024
This is quite astonishing considering that MicroStrategy was only a billion-dollar company when She first bought Bitcoin for her treasury about four and a half years ago.
The big question I ask myself is how and when will this end? Assuming the MSTR continues to pump until the peak of this bull market, it is anyone’s guess how high the MSTR will rise.
But how hard would it be to break it down in a bear market, considering it’s essentially a leveraged trade on Bitcoin? Dare I suggest that this time might be different, and that the downside to the next Bitcoin bear market won’t be as brutal as the 70+% corrections we’ve been accustomed to seeing historically?
Even with the existence of spot Bitcoin ETFs, and the idea that the US might lead the charge on nation-states purchasing large amounts of Bitcoin, I’m still not convinced that we won’t eventually see a massive decline in the price of Bitcoin. And I’m mentally preparing for a normal Bitcoin bear market to start after this bull market ends sometime in the next year or so.
But back to MSTR – Michael Saylor has so far proven that Bitcoin for businesses The strategy works amazingly well. Public companies went out of business last week announcing that they had bought Bitcoin for their balance sheet or were planning to do so, and this trend looks set to continue as the CEO of Rumble asked his audience 94% of his 42,522 voters said “yes.”
Let’s put it in the form of a poll.
Should Rumble add Bitcoin to its balance sheet?
-Chris Pavlovsky (@krispavlovsky) November 19, 2024
Even Michael Saylor I offered To help explain how and why Rumble should adopt the company’s BTC strategy.
Institutional adoption of Bitcoin is here and will grow for the foreseeable future. As companies discover the logic behind adopting Bitcoin as a strategic reserve asset, the number of publicly traded companies adopting this strategy will rise dramatically.
Companies that add bitcoin to their balance sheet will rise above most other companies — even the largest tech giants — in terms of trading volume, as MicroStrategy did, until all companies add bitcoin to their balance sheet. I try to put myself in the shoes of a trader, who has knowledge of Bitcoin, and I think to myself, “Why on earth would I buy shares of any company if it doesn’t have Bitcoin on its balance sheet?” I wouldn’t do that, it would be too boring.
Putting Bitcoin on the balance sheet helps create volatility, and thus opportunity for stock traders, which is good for traders, the stock price and the company in general. If you are a publicly traded company, it is a no-brainer to adopt Bitcoin as a treasury reserve asset.
This article is a takes. The opinions expressed are entirely those of the author and do not necessarily reflect the opinions of BTC Inc or Bitcoin Magazine.