MSTR $42BN Buy Math (Patreon)

Q re the MSTR Buy

A massive $42 billion purchase of Bitcoin is planned, all from MicroStrategy ($MSTR). Note it could take 3 years.

Let’s break down the math:

• If no new Bitcoin buyers enter the market, this purchase alone could conservatively increase Bitcoin’s market cap by 75 times. This means Bitcoin’s price could reach at least $230,000.

• If we assume a higher 120x increase (as estimated by Bank of America), Bitcoin could go up to $325,000 per coin.

These projections assume no new corporate buyers, no government investments, no retail buyers, no sovereign, no pension funds, no BlackRock and no extra demand from rising prices.

For MicroStrategy, this might mean doubling its Bitcoin holdings by 2025, potentially reaching 500,000 BTC. At a $325,000 price per Bitcoin, that’s about $162 billion in Bitcoin assets. I am trying to calc the impact on MSTR but being in early it will not matter, this could change my Calculus around profit taking this cycle.

If these numbers don’t excite you, it’s hard to say what will.

I am happy with my pair trade today