The post Could MicroStrategy go bankrupt if Bitcoin drops? appeared on BitcoinEthereumNews.com.

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. 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 $30K.$MSTR debt is $7B and its $BTC holdings are worth $46B. Based on BTC alone, the liq price is $16.5K. pic.twitter.com/cTwwTGYif4 — Ki Young Ju (@ki_young_ju) December 17, 2024 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…

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Filed under: News - @ December 17, 2024 10:27 pm