Bitcoin is making headlines once again with a bold price prediction of reaching $1 million by 2033 and hitting a cycle-high of $200,000 by 2025, as stated by Bernstein. The software developer MicroStrategy, known for being the largest corporate owner of bitcoin, has been initiated with an outperform rating by Bernstein, with a staggering $2,890 price target.
MicroStrategy has transformed itself into a major player in the cryptocurrency space, now holding 1.1% of the global supply of bitcoin, valued at around $14.5 billion. This significant ownership has propelled the company’s stock to new heights, closing at approximately $1,484 on Thursday. With a substantial bitcoin reserve of 214,400 coins, MicroStrategy has solidified its position as a leading bitcoin company under the guidance of founder and chairman Michael Saylor.
Saylor’s strategic vision has attracted considerable capital, both in the form of debt and equity, to fuel MicroStrategy’s active bitcoin acquisition strategy. The company distinguishes itself from passive spot exchange-traded funds (ETFs) by implementing an active leveraged bitcoin strategy, resulting in a higher bitcoin per equity share over the past four years.
Bernstein’s bullish BTC price forecast is driven by the growing demand from spot ETFs and the limited supply of bitcoin in circulation. The report now projects bitcoin to potentially reach $500,000 by 2029, with the 2025 estimate revised upwards from $150,000. MicroStrategy’s innovative long-term convertible debt strategy allows the company to capitalize on bitcoin’s potential upside while minimizing the risk of liquidating the cryptocurrency on its balance sheet.
In a recent move to further bolster its bitcoin holdings, MicroStrategy proposed a $500 million debt sale of convertible notes. This initiative underscores the company’s commitment to expanding its cryptocurrency portfolio and solidifying its position as a key player in the digital asset market.
As the cryptocurrency landscape continues to evolve, MicroStrategy remains at the forefront of innovation and strategic investment in bitcoin. With a clear vision and proactive approach to navigating the volatile market, the company is poised to capitalize on the potential growth of bitcoin in the years to come.