What Will Microstrategy Do With 70 Thousand Bitcoins? Three Possible Scenarios
Microstrategy has often come up with Bitcoin worth $ 650 million, which it bought in 2020, and has dragged other corporate firms after it. The company, which has 70,470 bitcoins in total, is worth $ 1.6 billion at the current BTC price. So what can Microstrategy do in the future with this high rate of Bitcoin? Fintek and Ellie Frost, a popular figure in the banking industry, shared their predictions on the issue.
Ellie Frost, who works in the financial industry and is also interested in Bitcoin and cryptocurrencies, shared on Twitter what MicroStrategy can do with the 70,470 BTC it has bought over the year. Frost said that if the price of Bitcoin rises, the company can evaluate the BTC it has around 3 main scenarios.
“Given the rise of bitcoin, we can say that BTC MicroStrategy will not only remain a reserve asset, it will also change the direction of the company.”
Ellie Frost shared brief information primarily about the company’s Bitcoin purchases. Frost testified that MicroStrategy owns 0.34% of the total Bitcoin supply, saying it made Bitcoin the company’s reserve currency. Referring to the statements of CEO Michael Saylor, Frost stressed that the average value of bitcoins purchased was $ 15,964 and said, “what will happen if the BTC price goes up?” he asked me.
What happens if the price of Bitcoin goes up?
Ellie Frost said: “Bitcoin is forecast to rise by $ 65k – $ 1m or more. If the BTC becomes 65 thousand dollars, MicroStrategy will have BTC worth 4.6 billion dollars. If BTC goes up to $ 1 million, the company will have $ 70.5 billion in Bitcoin.” said. According to Frost, the fact that an asset owned by the company becomes worth about 20 times the total value of the company also brings with it some scenarios.
3 possible scenarios
Ellie Frost first started with a script she found unlikely. Frost suggested that the company could re-invest in core products with the rest by selling some of the BTCS. But he stressed that this was an unexpected situation. As another scenario, Frost cited the possibility of the company investing in new products in the field of blockchain analytics. Frost supported this scenario by showing the company’s new control panel called “Bitcoin Strategy”, which he found quite logical.
In the final scenario, Frost focused on the possibility that the company could completely turn into a crypto company. “With bitcoin’s rapidly rising value, this possibility is not impossible at all.” the second scenario is more likely to happen, ” Frost said.