Analysts from Bernstein, as reported by The Block, have significantly raised their price target for MicroStrategy (MSTR) to $600 by the end of 2025, reflecting a bullish outlook on the company’s unique strategy of accumulating Bitcoin (BTC-USD). They anticipate that MicroStrategy’s ownership of Bitcoin will increase from 1.7% of the circulating supply to 4% over the next decade.
The analysts, led by Gautam Chhugani, describe MicroStrategy’s approach as “unprecedented on Wall Street,” emphasizing the firm’s aggressive Bitcoin acquisition strategy. This strategy has been supported by MicroStrategy’s ability to attract substantial global capital, evidenced by the firm securing $3 billion in convertible debt and raising $6.6 billion through equity this month alone. These financial maneuvers are part of a broader plan to raise $42 billion over three years, with $21 billion each in debt and equity.
MicroStrategy’s stock performance has been remarkable, with shares jumping 568% year-to-date, hitting Bernstein’s previous target of $290 set in June. The new $600 price target implies a 42% upside from the stock’s last closing price of $421.88. In pre-market trading, the stock has already shown further momentum, climbing above $437.
The analysts’ optimism is based on several key factors. First, they see Bitcoin entering a sustained bull market, bolstered by a favorable regulatory environment, growing institutional interest, and macroeconomic conditions like low interest rates, inflation risks, and high government debt. They believe these elements will continue to support Bitcoin’s value.
Second, they assess MicroStrategy’s financial health, noting that its debt structure—long-term unsecured convertible debt—poses negligible risk to its liquidity despite the volatility of Bitcoin.
Lastly, regarding capital scaling, Bernstein’s analysts are confident that MicroStrategy will not only meet but exceed its capital raise targets, potentially within the next 18 months, given the current market conditions.
In their “base case” scenario, by 2033, MicroStrategy could own around 830,000 BTC, equating to approximately $830 billion if Bitcoin reaches $1 million per coin. This projection underscores the firm’s pivotal role in the cryptocurrency market, positioning it as a significant player in digital asset investment.
This analysis from Bernstein, as reported by The Block, highlights the unique intersection of traditional finance and the burgeoning crypto economy, with MicroStrategy at the forefront of this convergence.
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