Could MicroStrategy go bankrupt if Bitcoin drops?

Source Cryptopolitan

MicroStrategy holds over 439,000 Bitcoins worth $46 billion. Should the price of BTC plunge, CryptoQuant CEO Ki Young Ju believes the firm may not face bankruptcy, stating it will only happen “if an asteroid hits Earth.” The company continues to profit, with a 72.4% yield this year and a stock surge of 540% in 2024.

Led by Michael Saylor, MicroStrategy, following a recent 15,350 BTC purchase, raised its Bitcoin treasury to a total of 439,000 BTC, which accounts for over 2% of BTC’s total supply. With the firm’s growing position, there are now rising concerns that MicroStrategy could be forced to go bankrupt and liquidate its holdings should Bitcoin suffer a major drop.

Ki Young Ju’s perspective

Ki Young Ju explained that MicroStrategy could only face bankruptcy if Bitcoin’s price falls to $16,500. He pointed out that the company is holding around $46 billion worth of Bitcoin, but there is only $7 billion of debt.

The CryptoQuant CEO also mentioned that Bitcoin has never dropped below $30,000 for long-term holders like they never felt that way unless there would be an unexpected drop.

He stated, “MicroStrategy only goes bankrupt if an asteroid hits Earth,” not bothering about a Bitcoin crash to $16,000.

He believes that Bitcoin has become more stable and irreplaceable because more institutions are getting involved. This support from institutions makes Bitcoin less likely to experience a huge price drop and also it has strong future stability.

On the other hand, critics like Peter Schiff believe MicroStrategy could go bankrupt if Bitcoin crashes, as the company’s huge Bitcoin holdings are a risky gamble. He thinks a market downturn could cause major financial problems.

Despite this, MicroStrategy is still aggressively buying more Bitcoin. Recently, it bought 15,350 BTC, bringing its total holdings to 439,000 BTC, worth about $27.1 billion at an average price of $61,725 per Bitcoin. The company is still committed to its Bitcoin strategy, despite the criticisms.

MSTR joins Nasdaq-100

MicroStrategy recently made it to the Nasdaq-100, which could lead to increased investment and easier access to capital. The company’s confidence in Bitcoin’s future is clear from its ongoing investment strategy, including the “21/21 plan” to raise $21 billion to acquire more Bitcoin.

MicroStrategy’s Bitcoin operations have produced a 72.4% yield this year. This has resulted in a profit of 136,965 BTC, worth $14.66 billion at the current price of over $107,000 per coin.

Additionally, the company’s stock has surged by more than 540% in 2024, showing strong investor confidence in its Bitcoin strategy.

A Step-By-Step System To Launching Your Web3 Career and Landing High-Paying Crypto Jobs in 90 Days.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Ripple (XRP) Price Sees a Surge, Solana Targets $600 in 2025 as Investors Increase Focus on New AltcoinThe cryptocurrency market is showing renewed momentum as Ripple (XRP) experiences a significant price surge, and Solana (SOL) sets its sights on a bold $600 target by 2025. Meanwhile, a rising altcoin, Lightchain AI, is capturing investor attention with its innovative ecosystem and strong presale performance, making it a compelling choice for forward-looking investors. Ripple […]
Author  Cryptopolitan
Jan 15, Wed
The cryptocurrency market is showing renewed momentum as Ripple (XRP) experiences a significant price surge, and Solana (SOL) sets its sights on a bold $600 target by 2025. Meanwhile, a rising altcoin, Lightchain AI, is capturing investor attention with its innovative ecosystem and strong presale performance, making it a compelling choice for forward-looking investors. Ripple […]
placeholder
What Crypto Whales are Buying For May 2025Crypto whales are making bold moves heading into May 2025, and three tokens are standing out: Ethereum (ETH), Artificial Superintelligence Alliance (FET), and Onyxcoin (XCN).
Author  Beincrypto
Apr 21, Mon
Crypto whales are making bold moves heading into May 2025, and three tokens are standing out: Ethereum (ETH), Artificial Superintelligence Alliance (FET), and Onyxcoin (XCN).
placeholder
Ethereum Price Ready to Surge—$2,000 Level Could Be Within ReachEthereum price started a fresh increase above the $1,800 zone. ETH is now rising and attempting a move above the $1,850 resistance. Ethereum started a fresh recovery wave above the $1,820 resistance.
Author  NewsBTC
May 08, Thu
Ethereum price started a fresh increase above the $1,800 zone. ETH is now rising and attempting a move above the $1,850 resistance. Ethereum started a fresh recovery wave above the $1,820 resistance.
placeholder
Ethereum Price Explodes Past $2,200 with 25% Surge—Momentum Builds FastEthereum price started a fresh surge above the $2,000 zone. ETH is now up over 25% and consolidating gains near the $2,200 zone. Ethereum started a fresh surge above the $2,000 resistance.
Author  NewsBTC
May 09, Fri
Ethereum price started a fresh surge above the $2,000 zone. ETH is now up over 25% and consolidating gains near the $2,200 zone. Ethereum started a fresh surge above the $2,000 resistance.
placeholder
Gold Price Forecast: XAU/USD holds above $3,300 on economic uncertainty, geopolitical risksThe Gold price (XAU/USD) rebounds to around $3,310 during the early Asian trading hours on Monday. Ongoing tariff uncertainty and persistent geopolitical tensions boost demand for safe-haven assets like gold.
Author  FXStreet
Yesterday 01: 23
The Gold price (XAU/USD) rebounds to around $3,310 during the early Asian trading hours on Monday. Ongoing tariff uncertainty and persistent geopolitical tensions boost demand for safe-haven assets like gold.
goTop
quote