Bernstein analysts have raised their long-term Bitcoin price projection to $1 million by 2033 and have initiated coverage of MicroStrategy. They now predict that Bitcoin will hit $200,000 by the end of 2025, up from the previous estimate of $150,000. Additionally, Bernstein forecasts that Bitcoin will reach $500,000 by 2029.
The firm attributes these optimistic projections to the increasing demand for Bitcoin, particularly through newly launched ETFs and the trend of corporations adding Bitcoin to their treasuries. This growing demand, combined with the limited supply of Bitcoin, suggests significant potential for growth in the market.
Despite recent fluctuations in Bitcoin’s price, Bernstein remains positive about the long-term outlook for the cryptocurrency market. They believe that factors such as easing US inflation and changing attitudes towards cryptocurrencies in the political landscape support a favorable environment for Bitcoin and companies like MicroStrategy.
Speaking of MicroStrategy, Bernstein has initiated coverage of the company and assigned it an outperform rating with a price target of $2,890. MicroStrategy, known for its substantial Bitcoin holdings, closed at around $1,484 on June 14. The company currently holds approximately 214,400 bitcoins, valued at around $14.5 billion.
MicroStrategy has shifted its focus from a small software firm to a major player in the crypto market by adopting Bitcoin as a reserve asset in 2020. The company’s founder and chairman, Michael Saylor, has been a vocal advocate for Bitcoin and has strategically positioned MicroStrategy as a leading enterprise in the Bitcoin space.
Bernstein analysts Gautam Chhugani and Mahika Sapra praised Saylor’s approach, stating that MicroStrategy’s active leveraged Bitcoin strategy has resulted in a higher Bitcoin per equity share compared to passive ETFs. The company’s use of convertible debt allows them to capitalize on Bitcoin’s potential upside while minimizing liquidation risks.
In recent months, MicroStrategy has raised billions of dollars through debt offerings to increase its Bitcoin holdings. The company proposed a $500 million debt sale of convertible notes on June 13, which was later increased to $700 million on June 14. Bernstein believes that MicroStrategy’s proactive stance and significant Bitcoin holdings position them well to benefit from the expected growth in crypto value in the coming years.