MicroStrategy to eclipse Starbucks, Nike market cap if Bitcoin rallies to $138K
2024.12.17 12:05
MicroStrategy’s (MSTR) stock prices are up 546% for the year, with its market cap currently at $99.4 billion. Its Bitcoin (BTC) reserve is a major reason for its significant year-to-date yields, as the organization added 249,850 BTC in 2024, taking its total tally to 439,000 BTC.
With its market cap on the brink of breaking the $100 billion threshold, MicroStrategy will take over major American companies if Bitcoin hits higher price targets.
MicroStrategy’s market cap will eclipse Starbucks and Nike if BTC hits $138K
With 439,000 BTC in its treasury, MicroStrategy is the largest corporate holder of Bitcoin, surpassing Marathon Digital’s tally of 40,435 BTC by 985%.
Thus, monitoring BTC’s price gives a direct outlook of MSTR’s market cap potential. Based on MicroStrategy’s net asset value (NAV) worksheet, its fully diluted market cap is $114 billion, with the derived MSTR NAV at around $40 billion.
MicroStrategy NAV worksheet. Source: X.com
With respect to MicroStrategy’s BTC holding, every time the crypto asset moves $1,000 in either direction, MSTR’s market cap gains approximately $440 million.
Starbucks’s current market cap is $105.5 billion, and Nike’s is $115 billion.
Therefore, a mere 11% rally for Bitcoin to $118,810 will allow MicroStrategy’s market cap to surpass Starbucks in the valuation rankings. A 32% uptick to $140,000 per BTC would take MSTR’s market cap ahead of Nike. Surpassing Nike’s market cap assumes that MicroStrategy does not add to its current BTC holdings.
Related: MicroStrategy buys 15.3K Bitcoin for $1.5B, holdings reach 439K BTC
MicroStrategy will go bankrupt if an asteroid hits Earth, says analyst
MicroStrategy’s Bitcoin playbook effectively entails buying Bitcoin at a higher level, where the company issues debt and utilizes the proceeds to buy Bitcoin, which drives BTC price higher. MicroStrategy’s method does have detractors, one being Chainlink advocate Zach Rynes, who said he was “deeply uncomfortable” with the organization’s “debt-based acquisition.”
BTC Old Whale’s realized price by Ki-Young Ju. Source: X.com
However, Ki-Young Ju, CryptoQuant CEO, said that MicroStrategy’s Bitcoin trade would go south only if a natural catastrophic event occurred on the planet. In an X post Young-Ju said,
“MicroStrategy only goes bankrupt if an asteroid hits Earth. For 15 years, #Bitcoin has never dropped below the cost basis of long-term whales, which currently stands at $30K.”
Young-Ju added that MSTR’s “debt” was not an immediate concern since it is currently only $7 billion, compared to its BTC holdings, which are worth around $47 billion.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
