A recent study by capital adviser Jeff Walton suggests that even an 80% decline in the price of Bitcoin would not significantly impact MicroStrategy’s (MSTR) Bitcoin treasury. The analysis found that the company could survive a $95,195 to $18,826 price drop without substantial issues.
MicroStrategy holds an increasingly large amount of BTC on its balance sheet, which has drawn criticism for its high-risk approach. However, Walton argues that this criticism lacks logic and that the financial leverage behind MicroStrategy’s Bitcoin holdings is decreasing as prices rise.
In contrast, Charles Edwards, founder of Capriole Investments, believes that institutional demand for Bitcoin is “absolutely insane” and sees MicroStrategy as just one player in a growing market. He notes that 13.5% of all Bitcoin is now held by institutions and ETFs, indicating a strong trend towards adoption.
According to Edwards, the current bull run is only beginning, with mass-market “FOMO” due to start once the price passes $100,000. As such, investors should monitor developments in the market closely.
Source: https://cointelegraph.com/news/microstrategy-can-ignore-bitcoin-bear-market-price-crash-20k