- The bitcoin price could hit $1 million by 2033 and is likely to reach a $200,000 cycle-high by 2025.
- MicroStrategy initiated as outperform with a $2,890 price target at Bernstein.
- The software company’s long-term convertible debt strategy means it has time to benefit from bitcoin upside with limited liquidation risk to the crypto on its balance sheet, the report said.
As an analyst, I would rephrase it as follows: I recently discovered that MicroStrategy now holds approximately 1.1% of the total global supply of Bitcoin, valued at around $14.5 billion according to a recent research report released by brokers on Thursday. This significant expansion from a modest software company into a major cryptocurrency holder transpired within just four years.
Expert: Bernstein started providing analysis for the Virginia-based company located at Tysons Corner, setting a price estimate of $2,890. The stocks ended their trading day around $1,484 on Thursdays’ session. The firm, listed on Nasdaq, owns approximately 214,400 bitcoins. They began acquiring this cryptocurrency in the year 2020 and have included it as a component of their reserve assets.
As an analyst, I would rephrase it this way: Michael Saylor, the founder and chairman of the company, has firmly established himself as a prominent figure in the world of Bitcoin and has successfully positioned our company as a major player in this space. This recognition has drawn substantial capital investments, both debt and equity, towards an aggressive Bitcoin acquisition strategy for our company.
As a researcher studying investment strategies in the digital currency market, I’ve observed that Microstrategy distinguishes itself by implementing an “active leveraged Bitcoin approach” contrasting passive spot Bitcoin Exchange-Traded Funds (ETFs). Over the past four years, my analysis indicates that this aggressive strategy has yielded a greater return in terms of Bitcoin per equity share compared to the more conventional passive ETF investments.
MicroStrategy’s approach to long-term convertible debt for Bitcoin allows it to capitalize on possible price increases in Bitcoin while facing minimal risks of having to sell the cryptocurrency from its holdings to meet debt obligations. (Source: Paraphrased Report)
Yesterday, the company announced its intention to sell $500 million worth of convertible notes in a debt offering. The proceeds from this sale will be utilized to increase our holdings of bitcoin.
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2024-06-14 11:58