Today, MicroStrategy (MSTR) has surpassed $100 billion in market capitalization, becoming the 93rd largest publicly traded company in the US.
At the time of writing, MSTR has achieved greater trading volume than both stock giants Tesla and Nvidia today, and features traditional stock traders such as the Wall Street Bets community lose their minds.
Wow $MSTR is the most traded stock in America today… at its best $TSLA And $NVDA is crazy. It’s been years since a stock traded more than one of these two (it may actually have been that way). $GME to do it last). It’s also about double $SPY! Wild times.. pic.twitter.com/bUr8nycMX3
— Eric Balchunas (@EricBalchunas) November 20, 2024
This is absolutely astonishing considering MicroStrategy was only a $1 billion company when It first bought bitcoin for his treasury about four and a half years ago.
The big question I ask myself is: how and when does this end? Assuming the MSTR continues to rise until the peak of this bull market, it is anyone’s guess how high the MSTR will go.
But how hard will it crash in the bear market since it is essentially a leveraged trade on bitcoin? Dare I even suggest that this time might be different, and that the downside of the next bitcoin bear market won’t be as brutal as the 70%+ corrections we’re historically used to seeing?
Even with the spot Bitcoin ETFs and the idea that the US could lead the way in nation states buying up large amounts of Bitcoin, I’m still not convinced that we won’t eventually see a huge drop in the price of Bitcoin . And I’m mentally preparing for a normal bitcoin bear market that will begin after this bull market ends sometime in the next year or so.
But back to MSTR: Michael Saylor has proven so far that the Bitcoin for businesses strategy works amazingly. Public companies have come out of the woodwork this past week and announced that they have done just that Bought Bitcoin for their balance sheet or plan to do soand it looks like this trend will continue, as Rumble’s CEO asked his
Let’s put this in a poll format…
Should Rumble Add Bitcoin to Its Balance Sheet?
— Chris Pavlovski (@chrispavlovski) November 19, 2024
Michael Saylor even offered to help explain how and why Rumble should pursue a BTC business strategy.
Institutional adoption of Bitcoin is here and will only increase in the near future. As companies discover the logic behind adopting Bitcoin as a strategic reserve, the number of publicly traded companies adopting this strategy will explode.
Companies that add bitcoin to their balance sheets will rise above most other companies – even the big tech giants – in terms of trading volume, just like MicroStrategy, until all companies add bitcoin to their balance sheets. I try to put myself in the shoes of a trader, knowledgeable about Bitcoin, and think to myself, “Why on earth would I buy a company’s stock if they don’t have Bitcoin on their balance sheet?” I wouldn’t do that; it would be way too boring.
Putting BTC on the balance sheet creates volatility and therefore opportunities for stock traders, which is good for the traders, the stock price and the company in general. If you are a publicly traded company, it is a good idea to adopt bitcoin as a treasury reserve.
This article is a To take. The opinions expressed are solely those of the author and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.