MicroStrategy, the business intelligence firm co-founded by Bitcoin bull Michael Saylor, has significantly improved its Bitcoin acquisition strategy, surpassing 400,000 BTC in holdings.

However, there have been concerns about the company’s financial stability related to Bitcoin’s price, especially from Ki Youthful Ju, CEO of CryptoQuant. Ju warned that although the prospect of MicroStrategy stands bankruptcy is not impossible, it would require an event as unlikely as “an asteroid hitting Earth.”

MicroStrategy Financial Risk at $30,000 Bitcoin Floor Price

In recent post on X (formerly Twitter) Ju expanded on this point, stating that BTC maintains a constant floor price, never falling below the long-term cost base of primary holders, which is currently $30,000. He noted:

MicroStrategy’s debt is $7 billion and its Bitcoin holdings are valued at $46 billion. Based solely on Bitcoin, the liquidation price will be around $16,500. The low in the last cycle was $16,000. Talk of a drop to that level now seems as unlikely as predicting $3,000 when Bitcoin was trading at $60,000.

In the context of CryptoQuant’s current price movements excellent that the price rally towards a modern record high for BTC above $108,000 on Tuesday was fueled by compact liquidations totaling approximately $151 million in the last 12 hours,

The company revealed that during this surge, Bitcoin’s ratio to gold also reached an all-time high, strengthening Bitcoin’s reputation as “digital gold” and confirming its role as a preferred store of value over customary gold assets.

Additionally, the recent addition of MicroStrategy to the Nasdaq 100 index has improved market sentiment. Saylor suggested continuing Bitcoin purchases, even with spot prices exceeding $100,000.

CryptoQuant says this inclusion could lead to passive inflows into MicroStrategy shares, giving the company greater access to capital for Bitcoin takeovers.

BTC purchases for the sixth week in a row

Saylor he stated on Monday, Microstrategy bought the market’s leading cryptocurrency for the sixth week in a row. This transaction adds to the company’s significant Bitcoin portfolio, which currently stands at 439,000 BTC, acquired for approximately $27.1 billion at an average price of $61,725 ​​per coin.

Additionally, Saylor revealed that the company’s Bitcoin assets have delivered mighty gains, with growth of 46.4% quarter-to-quarter (QTD) and 72.4% year-to-date (YTD).

CryptoQuant also noted that this week’s central bank meetings appear to be of secondary importance to market sentiment around Bitcoin. While it remains highly unlikely, the “extremely dovish stance” of the Federal Reserve and Chairman Jerome Powell could provide the necessary momentum so that BTC can boost even more.

At the time of writing, BTC is trading at $104,140, ​​down 2.6% on a 24-hour basis, but still up 6.5% on the week.

Featured image from DALL-E, chart from TradingView.com