Coinspeaker MicroStrategy’s Bold Bitcoin Bet: Analysts Predict 4% Ownership by 2033
MicroStrategy’s aggressive Bitcoin strategy has been gradually coming together. Now, analysts at Bernstein have predicted that, within the next ten years, the company could own 4% of all the coin’s circulating supply.
At this time, the business intelligence firm has already accumulated 331,200 BTC BTC $96 058 24h volatility: 0.2% Market cap: $1.90 T Vol. 24h: $69.68 B , bought at an average price of $49,874. However, while its present holding represents 1.7% of BTC supply, the firm’s plan to continue boosting its holdings may justify these predictions.
In the Monday note to clients, Bernstein analysts, led by Gautam Chhugani, spoke highly of MicroStrategy’s approach to Bitcoin acquisition. According to the note, MicroStrategy is “a company on an insatiable path to attract billions in global capital to invest in Bitcoin”.
Meanwhile, Bernstein analysts have also updated their price target for MicroStrategy Inc (NASDAQ: MSTR) stock. They did so, based on the firm’s BTC acquisitions this far, alongside its promises to continue in its tracks.
Per Bernstein’s new forecast, MSTR would have surged 42% from its current trading price of $421.88 to hit $600 by the end of 2025.
Why Analysts Are Bullish on MicroStrategy Bitcoin
It might be worth noting that the optimism that Bernstein analysts are sharing is deeply rooted in three factors.
First, they look at whether investors are structurally long or short on Bitcoin. They have also taken into consideration whether MicroStrategy has any liquidity or insolvency risk. Lastly, they are looking at the firm’s ability to scale capital over the long term.
Regarding Bitcoin strategy, Bernstein analysts believe that the Bitcoin bull market may have entered a sustained stage. More so, the bull market coincides with increasing institutional adoption and favorable regulations and macroeconomic factors like low interest rates and minimal inflation risks.
On liquidity stability, the analysts have determined that despite Bitcoin’s volatility, MicroStrategy’s model of convertible debt ensures minimal risk to its balance sheet.
Lastly, the company has raised $9.6 billion in debt and equity this month alone. That means that it is far ahead of its $42 billion capital raise goal for the next three years. Going by this pace, expectations are that the plan will be completed within the next 18 months. That is with only $32.4 billion in potential acquisitions remaining.
For MicroStrategy, its ultimate endgame is to hold approximately 830,000 BTC by 2033, valued at $1 million per Bitcoin in Bernstein’s base-case scenario. This would translate to a staggering $830 billion worth of Bitcoin holdings.
A Little Dose of Skepticism
For all the optimism that Bernstein shares of MicroStrategy, particularly in the area of Bitcoin investments, it would be worthy to note that not everyone shares the same enthusiasm.
Citron Research, for instance, recently criticized the rapid rise of MicroStrategy’s MSTR stock. According to the short-selling firm, the rise may have “detached from BTC fundamentals”.
Notably, Citron’s concerns led to a 20% drop in MicroStrategy’s shares last week. However, with Bitcoin currently trading around $98,629 and MicroStrategy’s stock surging over 500% this year, MicroStrategy’s bold bet on Bitcoin appears to be paying off. That is, despite the occasional market skepticism.
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MicroStrategy’s Bold Bitcoin Bet: Analysts Predict 4% Ownership by 2033
