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

Bitcoin price could reach $1 million by 2033 and will likely hit a $200,000 mark by 2025.

MicroStrategy opened as outperform on Bernstein with a $2,890 price target.

The software company’s long-term convertible debt strategy means it’s time to capitalize on Bitcoin, with limited liquidation risk for the cryptocurrency on its balance sheet, the report said.

Bitcoin’s {{BTC}} price will likely reach $1 million by 2033 and reach $200,000 by 2025, a cycle high, Bernstein said as he launched coverage of software developer MicroStrategy, the largest institutional owner of the cryptocurrency. surpassed the rating.

MicroStrategy now owns 1.1% of the global supply of the world’s largest cryptocurrency, worth about $14.5 billion, and has transformed itself from a small software company in four years, the broker said in a research report on Thursday.

Bernstein initiated coverage of the Tysons Corner, Virginia-based company with a price target of $2,890. Shares closed at $1,484 on Thursday. The Nasdaq-listed firm currently owns 214,400 Bitcoins. He started buying the cryptocurrency in 2020 and adopted it as a reserve asset.

The company’s founder and chairman, Michael Saylor, “has become synonymous with the bitcoin brand and has positioned MSTR as a leading bitcoin company attracting scale capital (both debt and equity) for an active bitcoin acquisition strategy,” analysts Gautam Chhugani and Mahika said in a note. Sapra wrote.

The report noted that Microstrategy positions itself as an “active leveraged bitcoin strategy versus passive spot exchange-traded funds (ETFs)” and that the company’s active strategy has produced a higher bitcoin per share over the past four years.

The broker’s BTC price prediction is driven by unprecedented demand from spot exchange-traded funds (ETFs) and limited cryptocurrency supply. Bernstein now predicts that Bitcoin could reach $500,000 by 2029. The 2025 estimate was increased from $ 150,000.

MicroStrategy’s long-term convertible debt strategy means it has ample time to benefit from Bitcoin’s potential rise and has limited liquidation risk for the cryptocurrency on its balance sheet, the report said.

Yesterday, the company proposed selling $500 million worth of debt in convertible notes to increase its Bitcoin stash.

Read more: MicroStrategy Now Holds $13.6 Billion Worth of Bitcoin, Making Up 1% of Total Circulating Supply: Canaccord