Minority Mindset

Smart investments

Crypto News

Bitcoin Could Hit $1M Within 10 Years, Bernstein Says as It Initiates Coverage of MicroStrategy

Jun 13, 2024
  • 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 a researcher with a background in finance and experience following the cryptocurrency market, I believe that Bernstein’s prediction of Bitcoin reaching $1 million by 2033 and $200,000 by 2025 is a plausible scenario. MicroStrategy’s transformation into a significant player in the Bitcoin market is impressive, and their active strategy has produced higher returns compared to passive spot ETFs over the last four years.As a researcher, I’ve come across some intriguing predictions about the future price movements of Bitcoin (BTC). According to Bernstein, who has initiated coverage on software developer MicroStrategy with an outperform rating, the value of one Bitcoin could potentially reach $1 million by 2033. Furthermore, they anticipate a cycle-high of $200,000 for Bitcoin as early as 2025.

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.

The broker’s BTC price forecast is driven by the unprecedented demand from spot exchange-traded funds (ETFs) and because supply of the cryptocurrency is constrained. Bernstein now estimates that bitcoin could reach $500,000 by 2029. The 2025 estimate was raised from $150,000.

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.

Read More

2024-06-14 11:58