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    MicroStrategy’s stock soars 546%, nearing $100 billion valuation due to massive Bitcoin holdings

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    MicroStrategy’s stock has skyrocketed by 546% during this year, giving it a value close to $100 billion, chiefly due to its large Bitcoin holdings of 439,000 BTC. The company’s value is closely linked to Bitcoin’s price fluctuations. If Bitcoin’s value rises by 11% or 32%, MicroStrategy could potentially surpass Starbucks or Nike’s valuations, respectively. However, the company’s Bitcoin-based strategy has drawn some criticism over its sustainability and riskiness.

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    MicroStrategy’s stock prices are through the roof, rising by 546% this year. The company value is nearly a whopping $100 billion! Lots of this windfall comes from Bitcoin, which the company bought a bunch more of in 2024. They now have a huge pile of 439,000 BTC.

    If Bitcoin’s value keeps going up, MicroStrategy could become more valuable than hugely popular companies like Starbucks and Nike. In case you’re wondering, they’re currently sitting on 439,000 BTC. That’s a lot more than Marathon Digital, another big company, which has only 40,435 BTC.

    The value of MicroStrategy is pretty tied up in Bitcoin. One interesting stat is that for every grand that Bitcoin’s value goes up or down, MicroStrategy’s value also shifts by around $440 million.

    Fun fact: Starbucks is valued at $105.5 billion, while Nike’s value is $115 billion.

    Which means that if Bitcoin’s value goes up by just 11% to $118,810, MicroStrategy will topple Starbucks. A 32% rise to $140,000 per BTC will put Nike in the rear-view mirror. That’s assuming that MicroStrategy stops buying more Bitcoin.

    The company’s strategy is basically to sink a lot of money into Bitcoin when the value is high, and then watch as the BTC value goes even higher. But not everyone is loving this approach. Zach Rynes from Chainlink was pretty clear about being “deeply uncomfortable” with this model that’s based on taking on debt.

    But then there’s Ki-Young Ju, the big brain at CryptoQuant. He reckons that the only thing that could bankrupt MicroStrategy is an asteroid hitting Earth. As he points out, traditionally Bitcoin has never dropped below the value that long-term investors initially bought it at, which is currently around $30,000.

    So, even though MicroStrategy has a $7 billion debt to pay off, it’s sitting pretty with a $47 billion stash of Bitcoin. But like we always say, investing comes with risks and you should do your own homework before you dive into the deep end.

    This isn’t recommending you to go out and buy anything. It’s simply a bit of information we thought was interesting. Because in all things money, you gotta be smart and savvy, folks.

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