Bernstein
analysts

Gautam
Chhugani
and
Mahika
Sapra
recently
revised
their
price
targets
for
Bitcoin
in
their
latest
market
report,
which
also
initiated
coverage
on

MicroStrategy.
These
analysts
also
outlined
factors
that
they
believe
could
contribute
to
BTC’s
exponential
price
surge. 

Bitcoin
To
Hit
$200,000
And
Then
$1
Million

Chhugani
and
Sapra
predicted
in
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.
However,
these
analysts
have
now
revised
their
targets
and
alluded
to
the

institutional
demand

for
BTC
as
one
of
the
reasons
they
believe
the
flagship
crypto
can
reach
such
heights.

Related
Reading

The
research
firm
predicts
that
the

Spot
Bitcoin
ETFs

will
continue
to
record
impressive
demand
and
that
the
Bitcoin
under
management
could
reach
$190
billion
by
2025,
a
significant
increase
from
the
$60
billion
in
BTC
that
funds
issuers
already
have
under
management. 

In
other
words,
these
analysts
expect

BTC’s
price

to
succumb
to
the
supply
and
demand
dynamics,
considering
that
the
Bitcoin
in
circulation
is
bound
to
drastically
reduce
as
these
Spot
Bitcoin
ETFs
continue
to
accumulate
a
significant
amount
of
the
crypto
token
for
their
respective
ETFs.
Moreover,
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
Benefit
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
thanks
to
its
BTC
exposure.
A
rise
to
$2,890
represents
about
a
95%
increase
for
MicroStrategy’s
stock,
which
is

 

currently
valued

at
around
$1,500. 

The
research
firm
noted
that
MicroStrategy
has
committed
itself
to
“building
the
world’s
largest
Bitcoin
company.”
This
has
already
paid
off
so
far,
with
Chhugani
and
Sapra
stating
that
the
software
company
has
transformed
from
a
“small
software
company
to
the
largest
BTC
holding
company”
since
August
2020
(when
it
started
accumulating
BTC). 

MicroStrategy
already
owns

1.1%
of
Bitcoin’s
total
supply,
with
holdings
worth
around
$14.5
billion.
The
company’s
BTC
holdings
are
expected
to
increase
soon
enough,
as
they
recently

announced

plans
to
offer
$500
million
of
Convertible
Senior
Notes.
Some
of
the
proceeds
from
the
proposed
sale
will
be
used
to
buy
additional
BTC. 

Related
Reading

Berstein
highlighted
how
the
company’s
co-founder

Michael
Saylor

has
become
synonymous
with
the
Bitcoin
brand
and
that
the
company’s
position
as
the
leading
Bitcoin
company
has
helped
attract
“at
scale
capital
(both
debt
and
equity)
for
an
active

 

Bitcoin
acquisition
strategy.”
In
dollar
terms,
Bernstein
noted
that
MicroStrategy’s
Bitcoin
net
asset
value
(NAV)
per
share
“has
grown
nearly
fourfold,
surpassing
the
2.4x
growth
in
Bitcoin’s
spot
price.”

“We
believe
MSTR’s
long
term
convertible
debt
strategy
allows
it
enough
time
to
gain
from
Bitcoin
upside,
with
limited
liquidation
risk
to
its
Bitcoin
on
balance
sheet.”
Chhugani
and
Sapra
added. 

Featured
image
created
with
Dall.E,
chart
from
Tradingview.com

Go to Source
Author: Scott Matherson

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