Bitcoin
Bitcoin Could Hit $1 Million in 10 Years, Says Bernstein as He Initiates MicroStrategy Coverage
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The price of Bitcoin could reach $1 million by 2033 and will likely reach a cycle high of $200,000 by 2025.
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MicroStrategy started outperforming with a $2,890 Bernstein price target.
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The software company’s long-term convertible debt strategy means it has time to benefit from bitcoin’s upside with limited liquidation risk for the cryptocurrency on its balance sheet, the report said.
The price of bitcoin {{BTC}} will likely reach $1 million by 2033 and peak at $200,000 by 2025, Bernstein said as he began coverage of software developer MicroStrategy, the largest corporate owner of the largest cryptocurrency, with a superior performance rating.
MicroStrategy now holds 1.1% of the global supply of the world’s largest cryptocurrency, valued at around $14.5 billion, having transformed itself from a small software company in the space of four years, the exchange said in a report. poll on Thursday.
Bernstein initiated coverage of the Tysons Corner, Virginia-based company with a $2,890 price target. Shares closed around $1,484 on Thursday. The Nasdaq-listed company currently holds 214,400 bitcoins. He started buying cryptocurrency in 2020, adopting it as a reserve asset.
The company’s founder and chairman, Michael Saylor, “has become synonymous with the bitcoin brand and has positioned MSTR as a leading bitcoin company by attracting large-scale capital (both debt and equity) for an active bitcoin acquisition strategy.” , analyze Gautam Chhugani and Mahika. Sapra wrote.
Microstrategy positions itself as an “active leveraged bitcoin strategy versus passive exchange-traded funds (ETFs),” the report said, noting that over the past four years the company’s active strategy has produced higher bitcoin per share.
The broker’s BTC price prediction is driven by unprecedented demand for spot exchange-traded funds (ETFs) and because the cryptocurrency’s supply is limited. Bernstein now estimates that bitcoin could reach $500,000 by 2029. The estimate for 2025 has been increased from $150,000.
MicroStrategy’s long-term convertible debt strategy means it has enough time to benefit from the potential rise in bitcoin with limited liquidation risk of the cryptocurrency on its balance sheet, the report added.
The company yesterday proposed an investment of US$500 million debt sale of convertible notes to increase your bitcoin supply.
See more information: MicroStrategy Now Holds $13.6 Billion in Bitcoin, 1% of Total Circulating Supply: Canaccord