MicroStrategy can ignore Bitcoin bear market price crash to $20K — Research
2024-12-03

Bitcoin BTCUSD can fall below $20,000 without crucially impacting MicroStrategy’s Bitcoin treasury.
New research published on social media by capital adviser Jeff Walton on Dec. 3 concludes that the business intelligence firm could survive an 80% BTC price collapse.
MicroStrategy feels the heat only if BTC price hits $18,000
MicroStrategy’s Bitcoin exposure is higher than ever as the firm buys billions of dollars’ more BTC.
While BTCUSD increased by nearly 40% in November alone, analysis suggests that even a protracted correction would not cause MicroStrategy and CEO Michael Saylor, mastermind of the Bitcoin treasury, significant problems.
“The price of Bitcoin would need to fall to $18,826 in order for $MSTR’s assets to be worth less than their liabilities,” Walton calculates. 

The practice of adding BTC risk to company balance sheets has fielded its fair share of criticism. Moreover, Bitcoin has seen 80% retracements before. For instance, between November 2021 and November 2022, BTCUSD declined from $69,000 to a low of $15,600.
For Walton, however, the argument against corporate Bitcoin adoption contains little logic.
“As the price of Bitcoin rises, the financial leverage falls, fast,” he explained. 

Institutional Bitcoin demand “absolutely insane”
Equally excited for the future of the corporate trend is Charles Edwards, founder of quantitative Bitcoin and digital asset fund Capriole Investments.
Addressing followers on X this week, Edwards noted that MicroStrategy was just one player in the new institutional Bitcoin investment arena. If anything, he argued, the market is not bullish enough on the outcome.
“MSTR raising $B/week to deploy into Bitcoin. MARA currently boosting its holdings by 30% with a $1B raise. Absolutely insane institutional demand,” he commented. 

As Cointelegraph reported, Edwards sees the peak of the current Bitcoin bull run only beginning, with mass-market “FOMO” only due to begin once the BTC price passes the $100,000 mark.
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.