Renowned investment research firm Bernstein released a rating report on MicroStrategy yesterday, considering the future development of Bitcoin and the fact that MicroStrategy currently holds 1.1% of the total Bitcoin supply. As a result, they gave MicroStrategy an outperform rating and raised its target stock price to $2,890. Additionally, the report also predicted that the price of Bitcoin will reach $200,000 by 2025.
Wall Street investment bank Bernstein released a rating report on software developer MicroStrategy yesterday. They stated that MicroStrategy currently holds 1.1% of the total Bitcoin supply (as of April 26, MicroStrategy holds 214,400 Bitcoins, which is worth over $14.3 billion at the current value). Considering the future trend of Bitcoin, they gave MicroStrategy an outperform rating and raised its target stock price to $2,890.
MicroStrategy’s stock price closed at $1,483.88 yesterday, with nearly double the potential upside to the target price given by Bernstein. Analysts Gautam Chhugani and Mahika from Bernstein stated that the cycle high of $200,000 will be reached by 2025. The research report also predicted that due to the massive demand for Bitcoin spot ETFs and the limited supply of Bitcoin (21 million coins), Bitcoin will reach a cycle high of $200,000 by 2025.
Bernstein further estimated that by 2029, the price of Bitcoin could rise to $500,000, and by 2033, it could reach $1 million. MicroStrategy proposed to sell $500 million in convertible notes to increase its Bitcoin reserves. The report also added that MicroStrategy’s long-term convertible debt strategy means that it has enough time to benefit from the potential rise in Bitcoin. Prior to this, MicroStrategy announced yesterday that it plans to issue $500 million worth of convertible senior notes to compliant institutional investors and use the proceeds to buy more Bitcoin.