Can MicroStrategy Provide A SpaceX-Like Launchpad for Bitcoin to ATH?

As a seasoned crypto investor with over a decade of experience in this volatile market, I’ve seen my fair share of ups and downs. However, the recent surge in MicroStrategy (MSTR) stock price has caught my attention, not just because it’s breaking new ground, but also due to its potential impact on Bitcoin.


MicroStrategy, the world’s largest corporate holder of Bitcoin is capturing all the attention with a mega MSTR price rally. On Friday, the MSTR share price surged 16% shooting all the way to $212.59 levels following a major breakout above $190 last week. As MSTR widens its gap with BTC, analysts believe that the public-listed firm can provide a SpaceX-like launchpad for the BTC price rally ahead. On Sunday, October 13, Elon Musk’s SpaceX successfully launched Starship test flight 5.

Can Microstrategy Surge Trigger Next Bitcoin Rally

After the recent surge and record-breaking rise in the MSTR stock price, MicroStrategy’s market value has skyrocketed to an impressive $43 billion. Analysts from 10x Research foresee that this bullish trend could persist, given several significant triggers ahead.

As an analyst, I find it intriguing to consider the potential impact of MicroStrategy’s (MSTR) stock performance on Bitcoin’s price. In this scenario, it could be MSTR stock that wags the Bitcoin dog, given its significant role in the Bitcoin ecosystem. Currently, Bitcoin is trading at a 1.75% increase, surpassing the $64,000 mark, a notable resistance level for the asset class, all as of press time.

Over the year so far, Bitcoin’s price has climbed an impressive 48.6%. In contrast, shares in MicroStrategy have seen a jaw-dropping increase of 236%, which is over four times greater. If Bitcoin manages to match these returns, reaching $100,000 won’t be too distant a goal.

Can MicroStrategy Provide A SpaceX-Like Launchpad for Bitcoin to ATH?

Traders Remain Divided on MSTR Stock Movement

Bitcoin investor Fred Krueger has raised a warning flag about MicroStrategy shares, pointing out potential dangers associated with the company’s rising market capitalization. At present, MicroStrategy is worth approximately $43 billion, owning around 250,000 Bitcoins valued at $15.5 billion. In the past, the stock’s price has varied between being nine-tenths to one and a half times as much as its Bitcoin holdings.

Can MicroStrategy Provide A SpaceX-Like Launchpad for Bitcoin to ATH?

Krueger issues a warning: If the stock’s ratio drops to 1.4 for every Bitcoin it holds, with no change in Bitcoin’s own value, investors might experience substantial losses, possibly losing up to half their investment. He advises exercising caution when contemplating new share purchases given this high valuation.

In a different perspective, Bitcoin expert Rajat Soni has defended the valuations by stating that MicroStrategy’s share offers greater risk-balanced returns compared to spot Bitcoin ETFs. He elaborated that the current multiplier of 2.7 times on MSTR stock is in relation to the value of Bitcoins they acquire. This means, for each 1 Bitcoin worth of shares issued, MicroStrategy receives approximately 2.7 Bitcoins’ worth of cash, enabling them to buy more Bitcoin.

Through this mechanism, MSTR shareholders effectively earn a return similar to Bitcoin, since each share is tied to an escalating quantity of Bitcoin. As MSTR successfully sells new shares, it can generate more funds to purchase additional Bitcoins, thereby boosting its own price trend. This continuous loop, as proposed by Soni, might persist so long as the value of Bitcoin increases.

The premium for #Microstrategy shares is ~2.7x right now
I want to explain what this means in very simple terms:
Whenever Microstrategy (MSTR) releases new shares for purchase, I observe a trend where investors eagerly acquire these shares, effectively providing MSTR with approximately 2.7 times the value in return for each share they own.
MSTR receives 2.7 #Bitcoin worth of…
— Rajat Soni, CFA (@rajatsonifnance) October 13, 2024

During a recent chat, Michael Saylor, the founder and head honcho of MicroStrategy, shared an ambitious plan for the company’s upcoming evolution. His goal is to redefine its identity as the biggest global Bitcoin vault.

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2024-10-14 10:44