Investment firm Bernstein recently increased its end-2025 price target on MicroStrategy (MSTR) to $600, projecting that the company’s Bitcoin holdings could grow from 1.7% to about 4% of the total circulating supply in the next decade. This bullish prediction comes after MicroStrategy’s shares rose 515% year-over-year, closing at $421.88 on Friday.
MicroStrategy has been actively purchasing Bitcoin, making one of its largest purchases to date, acquiring 51,780 BTC for about $4.6 billion at an average price of $88,627 per Bitcoin. Their total holdings grew to 331,200 BTC. Soon after, MicroStrategy CEO Michael Saylor announced a larger BTC buy, bringing their total holdings to 386,700 bitcoins for a total of approximately $21.9 billion, at an average price of $56,761 per bitcoin.
Bernstein’s analysis is based on three key factors: the sustainability of Bitcoin’s bull market, MicroStrategy’s liquidity position, and the company’s long-term capital scaling ability. Analysts are optimistic about Bitcoin’s current market strength due to factors such as favorable US regulatory expectations and growing institutional acceptance.
MicroStrategy appears to be ahead of schedule on its ambitious $42 billion capital raising plan. The company has raised $3 billion in debt and $6.6 billion in equity this month alone, and analysts expect the company to complete the planned fundraising within 18 months, well ahead of the three-year target.
However, not all market observers share this optimistic view. Citron Research, for example, announced it took a short position in MSTR, expressing concerns about the valuation of MicroStrategy’s stock, even as they remain positive on Bitcoin. According to Bernstein’s “base case” scenario, MicroStrategy could hold about 830,000 BTC by 2033, potentially worth $830 billion if the price of Bitcoin reaches $1 million per coin.
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