The firm has assigned an \u201coutperform\u201d rating to Strategy\u2019s stock (MSTR) with a price target of $600, suggesting a potential upside of 75% from its current trading level.As of now, Strategy\u2019s stock is priced at $335.26, having experienced a slight decline of 2.09% recently.\u00a0<\/p>\n
Bernstein’s analysis indicates that Bitcoin could reach $200,000 by the end of 2025, $500,000 by 2029, and soar to $1 million by 2033, reflecting a potential 1,044% increase for the market\u2019s leading cryptocurrency in the next 8 years from current valuations.\u00a0<\/p>\n
This projected growth in Bitcoin’s value is expected to significantly enhance Strategy’s earnings per share, which are anticipated to rise to $207, up from the current $67.50.<\/p>\n
Holdings Set To Surge To 5.8% Of Supply<\/h2>\n
In a “bull case” scenario, the analysts predict that Strategy’s Bitcoin holdings could increase to represent 5.8% of the current circulating supply of approximately 19.8 million BTC, compared to only 2.5% at present, assuming favorable capital market conditions with low interest rates and a sustained bull cycle in cryptocurrency.<\/p>\n
However, with this growth comes a substantial increase in debt, which Bernstein estimates could reach $100 billion, coupled with equity proceeds of around $84 billion.\u00a0<\/p>\n
In a more conservative base case, the analysts expect Strategy’s holdings to climb to about 4% of Bitcoin’s circulating supply, while a bear case could see stagnation at approximately 2.6%, potentially leading to forced liquidations of assets.<\/p>\n
As of March 25, Strategy owned 506,137 Bitcoin, acquired at an average price of $66,608, which equates to a total value of around $33.7 billion. Recently, the company made headlines by purchasing an additional 6,911 BTC for $584.1 million through a combination of selling MSTR stock and issuing perpetual preferred shares (noted as STRK and STRF).\u00a0<\/p>\n
Bernstein views Strategy’s Bitcoin treasury as a core component of its business model, despite facing challenges related to its premium-to-net asset value (NAV) valuation and the aggressive pace of its Bitcoin acquisitions.\u00a0<\/p>\n
On Tuesday, Strategy’s shares closed at $341.81, reflecting a gain of 1.8%, reinforcing its position as a key player in institutional Bitcoin accumulation.<\/p>\n
<\/p>\n
Similarly, Bitcoin has also seen a 5% increase in the fourteen day time frame, trading at $87,470 at the time of writing.<\/p>\n
Featured image from DALL-E, chart from TradingView.com<\/p>\n","protected":false},"excerpt":{"rendered":"
Analysts at Bernstein have made a bold prediction regarding MicroStrategy, now known as Strategy, the Bitcoin proxy firm co-founded by Michael Saylor. They forecast that it could amass over 1 million Bitcoin (BTC) by 2033, potentially positioning Strategy to hold 5% of BTC’s total supply.\u00a0 Strategy Stock (MSTR) Receives ‘Outperform’ Rating\u00a0 Led by analyst Gautam…<\/p>\n","protected":false},"author":1,"featured_media":3727,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[245],"tags":[22,28,29,2020,32,33,34,35,36,51,52,53,254,523,1134,1083,1084,2021],"class_list":["post-3726","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bitcoin-news","tag-bitcoin","tag-bitcoin-news","tag-bitcoin-price","tag-bitcoin-strategy","tag-btc","tag-btc-news","tag-btc-price","tag-btcusd","tag-btcusdt","tag-crypto","tag-crypto-analyst","tag-crypto-news","tag-cryptocurrency","tag-microstrategy","tag-microstrategy-bitcoin","tag-microstrategy-bitcoin-holdings","tag-microstrategy-news","tag-microstrategy-profit"],"_links":{"self":[{"href":"https:\/\/ad-doge.com\/blog\/wp-json\/wp\/v2\/posts\/3726","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ad-doge.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ad-doge.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ad-doge.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ad-doge.com\/blog\/wp-json\/wp\/v2\/comments?post=3726"}],"version-history":[{"count":0,"href":"https:\/\/ad-doge.com\/blog\/wp-json\/wp\/v2\/posts\/3726\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ad-doge.com\/blog\/wp-json\/wp\/v2\/media\/3727"}],"wp:attachment":[{"href":"https:\/\/ad-doge.com\/blog\/wp-json\/wp\/v2\/media?parent=3726"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ad-doge.com\/blog\/wp-json\/wp\/v2\/categories?post=3726"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ad-doge.com\/blog\/wp-json\/wp\/v2\/tags?post=3726"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}