As a seasoned crypto investor with over a decade of experience under my belt, the recent bullish outlook for MicroStrategy (MSTR) by Bernstein has caught my attention. Having witnessed the rollercoaster ride that is cryptocurrency, I’ve learned to take such forecasts with a grain of salt, always keeping an open mind and a cautious heart.
As a researcher, I’m sharing an update based on a report by James Hunt for The Block: Bernstein, the investment firm I’m following, has increased their price target for MicroStrategy (MSTR) to $600 by the end of 2025. This projection is led by Gautam Chhugani and his team at Bernstein, who believe that MicroStrategy’s Bitcoin holdings could potentially grow from its current 1.7% to around 4% of the total circulating supply over the next ten years.
A positive perspective arises given that MicroStrategy’s shares have skyrocketed by approximately 515% this year so far, finishing at $421.88 on Friday.
According to Hunt’s latest report, MicroStrategy made its biggest Bitcoin buy yet, spending approximately $4.6 billion on 51,780 BTC between November 11-17, raising their total holdings to 331,200 BTC. However, just a short while ago, MicroStrategy’s co-founder and executive chairman, Michael Saylor, revealed on platform X that they have made an even bigger, more recent Bitcoin purchase, pushing their total holdings up to an impressive 386,700 bitcoins at a cost of around $21.9 billion, which equates to about $56,761 per bitcoin.
Bernstein’s assessment relies on three main elements: the longevity of Bitcoin’s uptrend, MicroStrategy’s financial flexibility, and its potential for lasting capital expansion. Analysts are optimistic about Bitcoin’s present market resilience, attributing it to positive regulatory predictions under the approaching Trump administration and a surge in institutional investment.
As per Bernstein’s assessment, MicroStrategy seems to be moving faster than anticipated with its $42 billion capital raising scheme. In just one month, they have successfully acquired $3 billion in convertible debt and an additional $6.6 billion in equity. The analysts predict that the company might finish this fundraising process within 18 months, which is significantly earlier than their three-year goal.
On the other hand, not everyone among market analysts holds such an optimistic perspective. One significant exception is Citron Research, who recently declared a short position for MSTR. Despite their continued support for Bitcoin, they argue that MicroStrategy’s stock currently appears overpriced.
In Bernstein’s “base case” outlook, the company might accumulate approximately 830,000 Bitcoins by 2033. If the value of each Bitcoin reaches a million dollars, this stash could be valued at an impressive $830 billion.
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2024-11-25 17:22