Strategy Could Become Largest U.S. Public Company if Bitcoin Hits $1M: Tom Lee

BitMine Chairman Tom Lee has predicted that Michael Saylor’s Strategy, previously MicroStrategy, could become the largest company on the stock exchange at some point. He alluded to how Bitcoin could contribute to this massive achievement, given the company’s exposure to the flagship crypto.

Tom Lee Makes Bold Prediction For Strategy and Its Bitcoin Bet

In a recent podcast, the BitMine Chairman predicted that Strategy could become the largest company on the stock market, especially if the Bitcoin price hits $1 million. This came as he noted how the company’s founder, Michael Saylor, is changing the reality of the stock market.

Tom Lee explained that Strategy and its founder don’t generate gap net income to justify its growth. Instead, they are more focused on the value of their balance sheet, which is centered around Bitcoin.

The BitMine Chairman further remarked that this move isn’t new to history, which is why he believes that the company could become the largest U.S. public company. He noted how ExxonMobil was one of the top five companies on the S&P 500 for an entire generation, but the company derived its value from the value of its oil rather than its net income.

Tom Lee opined that Strategy is replacing ExxonMobil and could therefore become the largest public company. In this case, the company’s value will be based on its Bitcoin holdings rather than its earnings or any other metric.

It is worth noting that the company still has a long way to go to become the largest public company potentially. With the MSTR stock currently trading at around $380, Strategy boasts a market cap of $2.52 billion. Meanwhile, the largest companies are currently NVIDIA and Microsoft, with market caps of $4.3 trillion and $3.9 trillion, respectively.

All In On Bitcoin

Saylor’s company currently holds 628,791 BTC, which it acquired for $46.08 billion. Meanwhile, it just filed a $4.2 billion STRC offering, with plans to use the net proceeds to buy more Bitcoin.

In a recent X post, Strategy again highlighted how it is going all-in on Bitcoin by making the flagship crypto its primary reserve asset. The company currently holds $71 billion worth of BTC. Meanwhile, it has only $50 million in fiat.

Thanks to this Bitcoin strategy, Saylor’s company currently boasts one of the top 10 largest U.S. corporate treasuries, ahead of NVIDIA, PayPal, and ExxonMobil. The company has an edge over these other companies as it holds BTC, which could continue to appreciate due to its volatility, while the others hold cash.

Meanwhile, it is worth noting that Tom Lee’s BitMine is looking to adopt Saylor’s strategy. The company is emulating this model with Ethereum and not Bitcoin. It is currently the largest public Ethereum holder with 833,100 ETH, similar to how Strategy is the largest public Bitcoin holder.