Bernstein analysts Gautam Chhugani and Mahika Sapra recently revised their price targets for Bitcoin of their latest market report, which also initiated coverage on MicroStrategy. These analysts also outlined aspects that they imagine could contribute to BTC’s exponential price surge.
Bitcoin To Hit $200,000 And Then $1 Million
Chhugani and Sapra predicted within the report that BTC will rise to a cycle high of $200,000 by 2025 and that the flagship crypto will reach $1 million by 2033. Bernstein had previously predicted that Bitcoin would reach $150,000 by 2025. Nonetheless, these analysts have now revised their targets and alluded to the institutional demand for BTC as considered one of the explanations they imagine the flagship crypto can reach such heights.
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The research firm predicts that the Spot Bitcoin ETFs will proceed to record impressive demand and that the Bitcoin under management could reach $190 billion by 2025, a big increase from the $60 billion in BTC that funds issuers have already got under management.
In other words, these analysts expect BTC’s price to succumb to the provision and demand dynamics, considering that the Bitcoin in circulation is certain to drastically reduce as these Spot Bitcoin ETFs proceed to build up a big amount of the crypto token for his or her respective ETFs. Furthermore, two Bitcoin halvings are set to occur before 2033, further reducing miners’ supply and thereby supporting their base case of BTC hitting $1 million.
MicroStrategy To Profit From BTC’s Growth
These Berstein analysts also initiated coverage on MicroStrategy with an outperform rating. They predict that the software company’s stock can rise to $2,890 due to its BTC exposure. An increase to $2,890 represents a couple of 95% increase for MicroStrategy’s stock, which is currently valued at around $1,500.
The research firm noted that MicroStrategy has committed itself to “constructing the world’s largest Bitcoin company.” This has already paid off thus far, with Chhugani and Sapra stating that the software company has transformed from a “small software company to the most important BTC holding company” since August 2020 (when it began accumulating BTC).
MicroStrategy already owns 1.1% of Bitcoin’s total supply, with holdings value around $14.5 billion. The corporate’s BTC holdings are expected to extend soon enough, as they recently announced plans to supply $500 million of Convertible Senior Notes. A few of the proceeds from the proposed sale will probably be used to purchase additional BTC.
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Berstein highlighted how the corporate’s co-founder Michael Saylor has turn out to be synonymous with the Bitcoin brand and that the corporate’s position because the leading Bitcoin company has helped attract “at scale capital (each debt and equity) for an energetic Bitcoin acquisition strategy.” In dollar terms, Bernstein noted that MicroStrategy’s Bitcoin net asset value (NAV) per share “has grown nearly fourfold, surpassing the two.4x growth in Bitcoin’s spot price.”
“We imagine MSTR’s long run convertible debt strategy allows it enough time to realize from Bitcoin upside, with limited liquidation risk to its Bitcoin on balance sheet.” Chhugani and Sapra added.
BTC price falls to $66,000 | Source: BTCUSD on Tradingview.com
Featured image created with Dall.E, chart from Tradingview.com