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MicroStrategy, the business intelligence firm co-founded by Bitcoin’s Michael Saylor, has significantly ramped up its Bitcoin acquisition strategy, with its holdings exceeding 400,000 BTC.
However, concerns about the company’s financial stability linked to the price of Bitcoin have emerged, especially from Ki Young Ju, CEO of CryptoQuant. Joe warned that while the possibility of facing MicroStrategy Bankruptcy It is not impossible, it requires an improbable event such as “an asteroid hitting Earth”.
MicroStrategy’s financial risks as the minimum price of Bitcoin remains at $30,000
Recently mail On He pointed out:
MicroStrategy has $7 billion in debt, while its Bitcoin holdings are worth $46 billion. Based on Bitcoin alone, the liquidation price would be around $16,500. The bottom of the last session was $16,000. Talking about a drop to that level now seems as unlikely as predicting $3,000 when Bitcoin was $60,000.
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In the context of current price movements, CryptoQuant male The price surge towards a new all-time high for BTC above $108,000 on Tuesday was driven by short liquidations totaling around $151 million over the past 12 hours,
The company revealed that the Bitcoin-to-gold ratio also reached an all-time high during this surge, cementing Bitcoin’s reputation as “digital gold” and underscoring its role as a preferred store of value compared to traditional gold assets.
In addition, MicroStrategy’s recent inclusion in the Nasdaq 100 index has boosted market sentiment. Saylor hinted at more Bitcoin buying, even as… Spot prices Exceeds $100,000.
CryptoQuant asserts that this listing may result in negative fund flows into MicroStrategy shares, providing the company with greater access to… capital For its acquisitions of Bitcoin.
BTC purchases for the sixth week in a row
Sailor male On Monday, Microstrategy bought the market-leading cryptocurrency for the sixth week in a row. This deal adds to the company’s large Bitcoin portfolio, which currently stands at 439,000 BTC, acquired for approximately $27.1 billion at an average price of $61,725 per coin.
Additionally, Saylor revealed that the company’s Bitcoin assets posted significant gains, with a 46.4% increase quarter over quarter (QTD) and a 72.4% year-to-date (YTD) gain.
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CryptoQuant also noted that this week’s central bank meetings appear secondary to the market sentiment surrounding Bitcoin. While this remains highly unlikely, a “very dovish stance” by the Federal Reserve and its Chairman Jerome Powell could provide the necessary support. batch For BTC to rise further.
At the time of writing, Bitcoin is trading at $104,140, down 2.6% on the 24-hour time frame but still up 6.5% over the week.
Featured image of DALL-E, chart from TradingView.com