There are only a few companies in the world whose market cap has exceeded $1 trillion so far. These companies are generally high-tech companies around the world except Warren Buffett’s Berkshire Hathaway. So, there is a high probability that the next big $1 trillion company will also be a tech company.
But what if we say that the next $1 trillion behemoth company could be a crypto company? Yes, you heard that right? It’s none other than MicroStrategy Inc. whose NASDAQ symbol is MSTR. Due to the accumulation of BTC holdings, the market cap of this organization soared around 264% since last year. Even since 2020, this company has beaten every single S&P 500 stock.
Journey to $1 Trillion of MSTR
The primary reason behind that surge because it holds around the world’s 1% Bitcoin holdings in its balance sheet. As per the estimates, it holds around 252,220 Bitcoins which is equal to $17 billion in today’s price range.
You may be surprised to know that this company has been buying Bitcoins every month since 2020. The company is also focusing on providing convertible debt as a way to purchase more BTC coins in the future.
In a nutshell, their motto is simple: “Buy Bitcoins as much as you can and wait for the prices to ramp up.”
Michael Saylor, founder of MicroStrategy Inc. also opined that BTC could hit the $13 million mark at the end of 2040. Hence there are high chance that it will definitely become the world’s first $1 trillion crypto company.
Transformation from SAAS company to Investment Bank
Few days back, Michael Saylor also planned something big regarding the transformation of the company. He wanted MSTR to transform from a software company into an investment entity (bank). He wanted to name it as Bitcoin finance company in the future. That’s why they are on a buying spree of BTC coins.
Because of this metamorphosis, MicroStrategy will start to create new Bitcoin capital market instruments in the world for investors.
Is it really easy to hit the $1 trillion mark for MicroStrategy?
As per the current market cap, MicroStrategy is just $50 billion company. And moreover, it is just a software company not a bitcoin investment bank. So if the price of Bitcoin increases, the value of MicroStrategy also increases. In other words, if Bitcoin becomes 20 times from current price, then the market cap of MSTR will hit $1 trillion mark.
But the catch is the crypto market is quite volatile and what will happen after 10 years, 20 years, 40 years, you can’t predict the price of Bitcoin and its altcoins. In this case, the core product of this company is just BTC holdings.
Forecasts of Bitcoin price movements
The current forecasts of Bitcoin seem to be quite volatile in nature. In 2022, the price of BTC fell around 65%. Some analysts say that it will hit the $1 million mark by 2030. For this thing to happen, Bitcoin has to appreciate at a CAGR of 70% over the next 5 to 6 years which is quite erratic.
Should you invest in MicroStrategy?
Well, the decision to buy MicroStrategy stock depends on BTC’s price movements. If it goes up, the value of MicroStrategy also goes up and vice versa.
