The software company was given an outperform rating and a $2,890 price objective by the broker.
Bitcoin (BTC) is expected to reach a cycle high of $200,000 by 2025 and $1 million by 2033, according to Bernstein, which also started covering software firm MicroStrategy, the largest corporate owner of the largest cryptocurrency, with an outperform rating.
In just four years, MicroStrategy has grown from a modest software company to control 1.1% of the world’s largest cryptocurrency, valued at approximately $14.5 billion, the broker stated in a research report on Thursday.
With a $2,890 price objective, Bernstein began covering the Tysons Corner, Virginia-based corporation. On Thursday, the shares ended the day at about $1,484. Currently, the Nasdaq-listed company has 214,400 bitcoin. In 2020, it started purchasing cryptocurrencies and used them as reserve assets.
Analysts Gautam Chhugani and Mahika Sapra stated that Michael Saylor, the company’s founder and chairman, “has become synonymous with brand bitcoin and has positioned MSTR as a leading bitcoin company, attracting at-scale capital (both debt and equity) for an active bitcoin acquisition strategy.”
In contrast to passive spot exchange-traded funds (ETFs), Microstrategy markets itself as a “active leveraged bitcoin strategy,” according to the study, pointing out that throughout the previous four years, the company’s active strategy has increased the value of bitcoin per equity share.
Because of the limited supply of bitcoin and the extraordinary demand from spot exchange-traded funds (ETFs), the broker has projected the price of bitcoin. According to Bernstein’s latest forecasts, bitcoin might hit $500k by 2029. The forecast for 2025 was increased from $150,00.
According to the research, MicroStrategy has a long-term convertible debt plan that gives it ample time to profit from any future bitcoin gains with little risk of the cryptocurrency’s liquidation on its balance sheet.
To increase its bitcoin holdings, the business recently suggested selling $500 million worth of convertible notes as debt.
