CryptoQuant CEO: MicroStrategy will go bankrupt only if an asteroid hits Earth
Everyone believes in the company's success
MicroStrategy is unlikely to face bankruptcy because Bitcoin’s market price will never drop low enough to threaten the company’s survival. This statement was made by CryptoQuant CEO Ki Young Ju on his X account.
According to him, in the past 15 years, Bitcoin’s price has never fallen below the base cost for long-term whales, which is currently $30,000.
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The analyst also pointed out that MicroStrategy’s debt stands at $7 billion, while the company’s assets are valued at $46 billion. Therefore, MicroStrategy would only face challenges if Bitcoin drops to $16,500.
"MicroStrategy will only go bankrupt if an asteroid hits Earth," concluded the head of CryptoQuant.
MicroStrategy’s strategy
MicroStrategy became a pioneer among public companies by making Bitcoin its primary reserve asset. Since August 2020, the company has been actively purchasing Bitcoin, viewing it as a hedge against inflation and the devaluation of fiat currencies.
To accumulate BTC reserves, MicroStrategy uses its free capital and raises funds through bond and stock offerings. Currently, the company holds 439,000 BTC worth $27.1 billion, making it the largest corporate holder of Bitcoin globally.
According to the latest data, between December 9 and December 15, the company acquired 15,350 Bitcoins for $1.5 billion.
