Ki Young Ju, CEO of CryptoQuant, a prominent analytics company, gave a pointed analysis regarding MicroStrategy’s financial situation concerning its Bitcoin assets through a post on X.<\/p>\n
Ju claimed, \u201cMicroStrategy would only face bankruptcy if an asteroid were to strike Earth. Over the last 15 years, Bitcoin has consistently remained above the price point that long-term investors consider as their average cost, currently set at $30K. With MicroStrategy’s debt at $7 billion and its Bitcoin reserves valued at $46 billion, the liquidation price based solely on Bitcoin is $16.5K.\u201d He recommended simplifying the analysis of liquidation price despite its seeming irrelevance at this time.<\/p>\n
This positive outlook on MicroStrategy\u2019s financial stability contrasts sharply with views from Bitcoin skeptic Peter Schiff. In a recent interview<\/a>, Schiff warned, \u201cI believe MicroStrategy will eventually go bankrupt. Ultimately, I foresee a crash in Bitcoin, leading its creditors to take control of the company.\u201d<\/p>\n Recently, MicroStrategy has made significant financial moves, including its addition to the Nasdaq-100 index, a change anticipated to draw more investments and bolster its market presence.<\/p>\n Following this inclusion, on December 16, 2024, MicroStrategy revealed it had acquired an additional 15,350 BTC at roughly $100,386 each, increasing its total Bitcoin holdings to 439,000. The total expenditure on these Bitcoins amounted to approximately $27.1 billion, with an average purchase price of $61,725 per BTC.<\/p>\n In late October, the company introduced an ambitious initiative named the \u201c21\/21 plan,\u201d aimed at raising $21 billion through equity and debt markets to bolster its Bitcoin stocks. Since this announcement, MicroStrategy has been regularly purchasing Bitcoin each week.<\/p>\n