Observe Nikolaus On X Right here
Right this moment, MicroStrategy (MSTR) surpassed a $100 billion market cap to change into the 93rd largest publicly-traded firm within the U.S.
On the time of writing, MSTR has executed extra buying and selling quantity than each inventory giants Tesla and Nvidia at present, and has conventional inventory merchants just like the Wall Road Bets neighborhood dropping their minds.
Wow $MSTR is essentially the most traded inventory in America at present.. to finest $TSLA and $NVDA is loopy. It's been years since a inventory has traded greater than a kind of two (it might have truly been $GME to final do it). It's additionally about double $SPY! Wild occasions.. pic.twitter.com/bUr8nycMX3
— Eric Balchunas (@EricBalchunas) November 20, 2024
That is completely mindblowing contemplating MicroStrategy was a mere $1 billion firm when it first purchased bitcoin for its treasury about 4 and a half years in the past.
The large query I’m asking myself is, how and when does this finish? Assuming MSTR continues to pump till the height of this bull market, it is anybody’s guess on how excessive MSTR could go.
However how laborious will it crash within the bear market, contemplating it’s primarily a leveraged commerce on bitcoin? Dare I even counsel that this time could also be completely different, and that the draw back of the following bitcoin bear market received’t be as brutal because the 70%+ corrections we’re traditionally used to seeing?
Even with the spot bitcoin ETFs, and the notion that the US could lead the cost of nation states shopping for up mass quantities of bitcoin, I’m nonetheless not satisfied that we don’t ultimately see an enormous downturn in bitcoin’s worth. And I’m mentally getting ready for a standard bitcoin bear market to begin after this bull market finishes someday within the subsequent yr or so.
However again to MSTR — Michael Saylor has so far confirmed that the Bitcoin for Companies technique works in gorgeous style. Public firms have been popping out of the woodwork this previous week saying that they’ve bought bitcoin for his or her steadiness sheet or plan to take action, and it appears this pattern will proceed because the CEO of Rumble requested his X viewers if he ought to add BTC to their steadiness sheet (nearly 94% of his 42,522 voters voted “sure”).
Lets put this in a ballot format…Ought to Rumble add Bitcoin to its steadiness sheet?
— Chris Pavlovski (@chrispavlovski) November 19, 2024
Michael Saylor even supplied to assist clarify how and why Rumble ought to undertake a company BTC technique.
Institutional bitcoin adoption is right here and it’s solely going to develop for the foreseeable future. As firms work out the logic behind adopting bitcoin as a strategic reserve asset, the variety of publicly-traded firms that undertake this technique goes to blow up.
Firms that add bitcoin to their steadiness sheet will rise above most different firms — even prime massive tech giants — by way of buying and selling quantity, as MicroStrategy has, till all firms add bitcoin to their steadiness sheet. I attempt to put myself within the sneakers of a dealer, with data on Bitcoin and assume to myself, “Why on earth would I purchase any firm’s inventory in the event that they don’t have bitcoin on their steadiness sheet?” I wouldn’t — it could be method too boring.
Placing BTC on the steadiness sheet helps create volatility, and due to this fact alternative for inventory merchants, which is sweet for the merchants, inventory worth, and firm total. If you’re a publicly-traded firm, it’s a no brainer to undertake bitcoin as a treasury reserve asset.
This text is a Take. Opinions expressed are fully the creator’s and don’t essentially mirror these of BTC Inc or Bitcoin Journal.
