BTC 2024
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MicroStrategy Faces No Liquidation Risk Unless BTC Goes to $3,561: Report Show Despite the growing concerns about the state of Microstrategy’s Bitcoin (BTC) position as the market continues to crumble, new research has shown that the company is still holding strong even in the face of turmoil with zero risk exposure unless BTC drops to $3,561. The study, titled “The Health of MicroStrategy’s Bitcoin Bet, was conducted by Blockworks Research, a crypto-focused media firm, to uncover whether MicroStrategy has Bitcoin liquidation risks, the risk level, and the company’s debt structure. MicroStrategy Holds Largest Bitcoin PortfolioAs one of the market leaders in the industry, MicroStrategy has the most prominent bitcoin position among publicly traded firms engaging with crypto assets. The company holds approximately 130,000 BTC worth around $2. 08 billion in its balance sheet. However, the business intelligence firm did not only use the cash in its balance sheet to acquire the assets but also with debt, bringing about rising concerns from crypto proponents regarding its debt structure. MicroStrategy Debt Structure According to Block work’s research, the company held a total of $2.37 billion of its long-term debt in the third quarter ending September 30, 2022. The debts comprised 2025 and 2027 Convertible Notes, 2028 Secured Notes, 2025 Secured Term Loans, and Other Long-term Secured Debt.The breakdown of the debts includes $650 million convertible notes completed on December 11 2020. The fund has a fixed interest rate of 0.75%, payable semi-annually around June 15 to December 15 each year, with a conversion rate of $398 per share. Despite a total debt of $2.37 billion, the study found that the company has no immediate liquidity risks until the bitcoin price trades below the $5000 mark. MicroStrategy to Top Up Collateral or Face LiquidityWith a Bitcoin portfolio of 130,000 BTC bought at an average price of $30,000 per bitcoin, a total of 30,051 BTC worth around $480 million at the current price of $16,000 has been used as collateral for the 2025 secured term loan with Silvergate. Recall that the company’s Subsidiary, MacroStrategy acquired a $205 million loan to increase its bitcoin holdings using part of the crypto asset purchased by MicroStrategy as collateral for the loan. Due to the current market crisis, the company will need to increase its collateral on the loan if BTC drops further to $13,644 to avoid a margin call that requires the LTV ratio to be returned to 25% or lower.Similarly, the company needs to top up its Silvergate loan if BTC drops to $3,561. “In addition, 14,890 BTC are being used as part of its collateral for the 2028 Senior Secured Notes, leaving the company and its subsidiaries with 85,059 liquid BTC. Microstrategy would need to find external funding to finance its Silvergate loan at a BTC spot price of $3,561, or face liquidation,” reads the research. The post MicroStrategy Faces No Liquidation Risk Unless BTC Goes to $3,561: Report appeared first on Coinfomania. Chimamanda Marcel - CoinDesk 2022-11-25 #MicroStrategy #Bitcoin #Michael Saylor #MicroStrategy #Bitcoin #Michael Saylor
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Plan B, the creator of the Stock-to-Flow model, took to Twitter on November 23 to ask the crypto community whether they think that Bitcoin’s (BTC) 2024 halving is priced in, or if BTC will pump after the 2024 halving. The halving policy was written into Bitcoin’s mining algorithm to counteract inflation by maintaining scarcity. In theory, the reduction in the pace of issuance means that the price will increase if demand remains the same. Till now, there have only been three Bitcoin halving events; the most recent being on 11 May 2020. One of the most important elements of every halving is the fact that it brings with it a change in the Bitcoin price. Historically, after every halving, Bitcoin experienced a bull run. It is important to note, however, that the effect of the halving will not be seen immediately, but after about three to six months. Only time will tell if the same rule will apply to the 2024 halving coming up. Bitcoin / TetherUS 1D (Source: CoinMarketCap) Data from CoinMarketCap indicates that BTC is currently trading at $16,589.38 after a 0.19% increase in price over the last 24 hours, and after reaching a high of $16,771.48 over the same time period. The crypto market leader is also currently in the green by 0.08% over the last seven days. BTC did, however, weaken against its rival (ETH) by just over 2%. Also in the red is BTC’s 24 hour trading volume which currently stands at $31,723,401,549 after a more than 4% decrease. Disclaimer: The views and opinions, as well as all the information shared in this price analysis, are published in good faith. Readers must do their own research and due diligence. Any action taken by the reader is strictly at their own risk. Coin Edition and its affiliates will not be held liable for any direct or indirect damage or loss The post Will Bitcoin Experience A Bull Run After the 2024 Halving? appeared first on Coin Edition. See original on CoinEdition Related ArticlesWhat price will Bitcoin reach in 2024?Bitcoin Price Prediction 2024
Based on the technical analysis by cryptocurrency experts regarding the prices of Bitcoin, in 2024, BTC is expected to have the following minimum and maximum prices: about $36,738.18 and $43,075.13, respectively. The average expected trading cost is $37,727.60.
What is the prediction of BTC 2025?By 2025, our price prediction forecasts that Bitcoin (BTC) could be worth $79,857.43.
What will Bitcoin be at the end of 2030?Bitcoin Price Prediction: Short-Term and Long-Term Route
Here are some exciting results, measured on an average rate: “Our panel thinks Bitcoin (BTC) will be worth $21,344 by the end of 2022 before rising to $79,193 by 2025.” Meanwhile, Bitcoin price could reach $270,722 in 2030, per the graph below.
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