MicroStrategy’s Bankruptcy Risk: CEO Warns Bitcoin Must Drop To $16,500 To Trigger Collapse

Name	Symbol	Market	Market Cap ($)	Algorithm
Bitcoin	BTCUSD	Crypto	1,918,790,936,444	SHA-256d

Name

Symbol

Market

Market Cap ($)

Algorithm

Bitcoin

BTCUSD

Crypto

1,918,790,936,444

SHA-256d

	Price Change	Price Change %	Current Price	Bid Price	Offer
	-104.50	-0.11%	97,102.26	97,097.86	97,097.87

Price Change

Price Change %

Current Price

Bid Price

Offer

-104.50

-0.11%

97,102.26

97,097.86

97,097.87

High Price	Low Price	Open Price	Prev. Close	52 Week Range
97,387.98	96,500.00	97,010.76	97,206.76	38,501.00 - 108,388.88

High Price

Low Price

Open Price

Prev. Close

52 Week Range

97,387.98

96,500.00

97,010.76

97,206.76

38,501.00 - 108,388.88

Exchange	Last Trade	Size	Trade Price	Currency
GDAX	03:36:22	0.000223	97,097.00	USD

Exchange

Last Trade

Size

Trade Price

Currency

GDAX

03:36:22

0.000223

97,097.00

USD

Price x Volume	Volume	Base Symbol	Related Pairs
67,224,148.59	693.02	BTC	BTCEUR	BTCGBP	ETHBTC

Price x Volume

Volume

Base Symbol

Related Pairs

67,224,148.59

693.02

MicroStrategy’s Bankruptcy Risk: CEO Warns Bitcoin Must Drop To $16,500 To Trigger Collapse

18/12/2024 9:30am

NEWSBTC

MicroStrategy, the business intelligence firm co-founded by Bitcoin bull Michael Saylor, has significantly ramped up its Bitcoin acquisition strategy, surpassing 400,000 BTC in holdings. However, concerns about the company’s financial stability tied to the Bitcoin price have emerged, particularly from Ki Young Ju, CEO of CryptoQuant. Ju cautioned that while the prospect of MicroStrategy facing bankruptcy is not impossible, it would require an event as unlikely as “an asteroid hitting Earth.” MicroStrategy’s Financial Risks As Bitcoin Price Floor Holds At $30,000 In a recent post on X (formerly Twitter), Ju elaborated on the matter by stating that BTC has maintained a consistent price floor, never dropping below the long-term cost basis of major holders, which currently stands at $30,000. He noted: MicroStrategy’s debt is $7 billion, while its Bitcoin holdings are valued at $46 billion. Based solely on Bitcoin, the liquidation price would be around $16,500. The last cycle’s bottom was at $16,000. Talking about a drop to that level now feels as improbable as predicting $3,000 when Bitcoin was at $60,000. Related Reading: Ethereum Reaches $4,100 For The First Time In Over Three Years, Aiming For $5,000 Next In the context of current price movements, CryptoQuant noted that the price surge toward BTC’s new all-time high above $108,000 on Tuesday was fueled by short liquidations totaling approximately $151 million over the past 12 hours, The firm disclosed that the Bitcoin-to-gold ratio also reached an all-time high during this surge, reinforcing Bitcoin’s reputation as “digital gold” and affirming its role as a preferred store of value compared to traditional gold assets. Additionally, MicroStrategy’s recent inclusion in the Nasdaq 100 has bolstered market sentiment. Saylor hinted at further Bitcoin purchases, even with spot prices exceeding $100,000. CryptoQuant asserts that this inclusion could lead to passive fund inflows into MicroStrategy shares, providing the company with greater access to capital for its Bitcoin acquisitions. BTC Purchases For Sixth Consecutive Weeks Saylor stated on Monday that Microstrategy has purchased the market’s leading crypto for the sixth week in a row. This transaction adds to the firm’s considerable Bitcoin portfolio, which currently stands at 439,000 BTC, acquired for around $27.1 billion at an average price of $61,725 per coin. Additionally, Saylor revealed that the firm’s Bitcoin assets have produced significant gains, with a 46.4% increase quarter-to-date (QTD) and a 72.4% gain year-to-date (YTD). Related Reading: Solana Monthly Chart ‘Looks Ready For A Monster Run’ – Details CryptoQuant also noted that this week’s central bank meetings appear to be secondary to market sentiment surrounding Bitcoin. While it remains highly unlikely, an “extremely dovish stance” from the Federal Reserve and Chairman Jerome Powell could provide the necessary momentum for BTC to rise even further. At the time of writing, BTC is trading at $104,140, down 2.6% on the 24-hour time frame but still up 6.5% on the week. Featured image from DALL-E, chart from TradingView.com

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