Right now, MicroStrategy (MSTR) surpassed a $100 billion market cap to turn into the 93rd largest publicly-traded firm within the U.S.
On the time of writing, MSTR has accomplished extra buying and selling quantity than each inventory giants Tesla and Nvidia right this moment, and has conventional inventory merchants just like the Wall Avenue Bets neighborhood dropping their minds.
Wow $MSTR is probably the most traded inventory in America right this moment.. to greatest $TSLA and $NVDA is loopy. It's been years since a inventory has traded greater than a kind of two (it could have truly been $GME to final do it). It's additionally about double $SPY! Wild instances.. 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 massive 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 might go.
However how arduous will it crash within the bear market, contemplating it’s primarily a leveraged commerce on bitcoin? Dare I even recommend that this time could also be totally 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 might lead the cost of nation states shopping for up mass quantities of bitcoin, I’m nonetheless not satisfied that we don’t finally see an enormous downturn in bitcoin’s value. And I’m mentally getting ready for a traditional bitcoin bear market to start after this bull market finishes someday within the subsequent 12 months or so.
However again to MSTR — Michael Saylor has to date confirmed that the Bitcoin for Firms technique works in beautiful style. Public corporations have been popping out of the woodwork this previous week asserting that they’ve bought bitcoin for his or her steadiness sheet or plan to take action, and it appears this development will proceed because the CEO of Rumble requested his X viewers if he ought to add BTC to their steadiness sheet (virtually 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 corporations determine the logic behind adopting bitcoin as a strategic reserve asset, the variety of publicly-traded corporations that undertake this technique goes to blow up.
Corporations that add bitcoin to their steadiness sheet will rise above most different corporations — even prime massive tech giants — by way of buying and selling quantity, as MicroStrategy has, till all corporations add bitcoin to their steadiness sheet. I attempt to put myself within the sneakers of a dealer, with information 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 manner too boring.
Placing BTC on the steadiness sheet helps create volatility, and subsequently alternative for inventory merchants, which is sweet for the merchants, inventory value, and firm general. In case you are 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 completely the writer’s and don’t essentially replicate these of BTC Inc or Bitcoin Journal.