The price of bitcoin could reach $1 million by 2033 and is expected to peak at $200,000 by 2025.
MicroStrategy initiated Outperform with a $2,890 price target at Bernstein.
The software company’s long-term convertible debt strategy means it has time to benefit from Bitcoin’s rise with limited liquidation risk for the crypto on its balance sheet, the report said.
The price of bitcoin {{BTC}} is expected to reach $1 million by 2033 and hit a cycle high of $200,000 by 2025, Bernstein said as he began covering software developer MicroStrategy, the largest company owning the largest cryptocurrency, with an outperform rating.
MicroStrategy now owns 1.1% of the global supply of the world’s largest cryptocurrency, worth around $14.5 billion, after transforming itself from a small software company into space of four years, the broker said in a research report on Thursday.
Bernstein initiated coverage of the Tysons Corner, Virginia-based company with a price target of $2,890. Shares closed at around $1,484 on Thursday. The Nasdaq-listed company currently holds 214,400 bitcoins. She began purchasing the cryptocurrency in 2020, adopting it as a reserve asset.
The company’s founder and chairman, Michael Saylor, “became synonymous with the Bitcoin brand and positioned MSTR as a leading Bitcoin company, attracting capital at scale (both debt and equity) for an active strategy of ‘Bitcoin acquisition’, analysts Gautam Chhugani and Mahika. Sapra wrote.
Microstrategy positions itself as an “actively leveraged Bitcoin strategy versus passive cash exchange-traded funds (ETFs),” the report said, noting that over the past four years, the company’s active strategy has produced a higher bitcoin per share.
The broker’s BTC price predictions are driven by unprecedented demand for spot exchange-traded funds (ETFs) and the fact that the cryptocurrency’s supply is limited. Bernstein now estimates that bitcoin could reach $500,000 by 2029. The estimate for 2025 was increased from $150,000.
MicroStrategy’s long-term convertible debt strategy means it has ample time to benefit from bitcoin’s upside potential with limited liquidation risk for the cryptocurrency on its balance sheet, the report added.
The company yesterday proposed an investment of 500 million dollars debt sale of convertible notes to increase its bitcoin reserve.
Learn more: MicroStrategy now holds $13.6 billion worth of Bitcoin, or 1% of the total circulating supply: Canaccord
