• Bernstein predicts Bitcoin’s price could reach $1 million by 2033 and $200,000 by 2025, while assigning MicroStrategy an outperform rating with a $2,890 price target.
  • MicroStrategy, led by Michael Saylor, has transformed into a major Bitcoin holder with a strategic approach leveraging long-term convertible debt to minimize risks and maximize potential gains.

MicroStrategy’s Strategic Move Earns Outperform Rating

In a bold prediction, brokerage firm Bernstein has suggested that Bitcoin’s price could soar to $1 million by 2033, with an anticipated cycle-high of $200,000 by 2025. This projection accompanies Bernstein’s initiation of coverage on MicroStrategy, a software company renowned for its significant investment in Bitcoin. The broker has assigned the firm an outperform rating and a striking $2,890 price target.

MicroStrategy, headquartered in Tysons Corner, Virginia, has undergone a remarkable transformation over the past four years. Originally a small software developer, it now holds 214,400 Bitcoins, equivalent to 1.1% of the global supply of the cryptocurrency. This massive accumulation, valued at approximately $14.5 billion, reflects the company’s aggressive Bitcoin acquisition strategy. As a result, MicroStrategy’s shares closed at around $1,484 on Thursday, but Bernstein’s optimistic forecast suggests considerable room for growth.

The firm’s founder and chairman, Michael Saylor, has become a prominent figure in the cryptocurrency world. His strategic vision has positioned MicroStrategy as a leading Bitcoin-centric company, attracting substantial capital through both debt and equity to fuel its ongoing Bitcoin purchases. Analysts Gautam Chhugani and Mahika Sapra emphasize that MicroStrategy’s active leveraged Bitcoin strategy has consistently outperformed passive spot exchange-traded funds (ETFs) in terms of Bitcoin per equity share.

The Power of Strategic Debt Management

A key component of MicroStrategy’s success is its long-term convertible debt strategy, which minimizes liquidation risks while allowing the company to capitalize on potential Bitcoin appreciation. This approach has provided the firm with a stable financial foundation to navigate the volatile cryptocurrency market. Recently, the company announced a proposed $500 million debt sale of convertible notes, aiming to further expand its Bitcoin holdings.

Bernstein’s forecast for Bitcoin’s price surge is underpinned by unprecedented demand from spot ETFs and a constrained supply of the cryptocurrency. The brokerage has adjusted its Bitcoin price estimate, now predicting a rise to $500,000 by 2029, up from its previous estimate of $150,000 by 2025. These projections highlight the growing confidence in Bitcoin’s long-term potential.

Bernstein’s coverage of MicroStrategy underscores the firm’s innovative approach to leveraging Bitcoin as a reserve asset. With a robust debt strategy and a clear vision for growth, MicroStrategy is well-positioned to benefit from the anticipated rise in Bitcoin’s value. As the world watches Bitcoin’s trajectory, MicroStrategy’s bold moves could set a precedent for other companies considering a similar path.