Bernstein analysts also revised their predictions for the current cycle and now project the flagship crypto to hit $200,000 by the end of 2025, up from its earlier estimate of $150,000. The firm also predicted Bitcoin will climb to $500,000 by 2029.
Bernstein attributed the growth expectations to the increasing demand for Bitcoin via multiple avenues, particularly the newly launched ETFs and the trend of corporations adding Bitcoin to their treasuries. The firm said the rising demand combined with the shrinking supply points to remarkable potential for growth.
Despite Bitcoin’s recent struggle to maintain its position above $67,000, with prices slipping to around $66,850, Bernstein’s optimistic forecast highlights the long-term potential of the crypto market.
The analysts believe that the broader economic environment, including easing US inflation and shifting political attitudes towards cryptocurrencies, supports a positive outlook for Bitcoin and MicroStrategy alike.
MicroStrategy coverage
As part of its bullish outlook, Bernstein initiated coverage of MicroStrategy, assigning it an outperform rating with a price target of $2,890. The Virginia-based company, known for its significant Bitcoin holdings, closed at approximately $1,484 on June 14.
MicroStrategy, which holds about 214,400 bitcoins worth approximately $14.5 billion, has transformed from a small software firm into a major player in the crypto market over the past four years. The company adopted Bitcoin as a reserve asset in 2020, and its founder and chairman, Michael Saylor, has been a prominent advocate for the digital currency.
Bernstein analysts Gautam Chhugani and Mahika Sapra highlighted Saylor’s strategic approach in positioning MicroStrategy as a leading Bitcoin enterprise, writing:
“Michael Saylor has become synonymous with brand Bitcoin, and MicroStrategy has positioned itself as an active leveraged Bitcoin strategy versus passive spot ETFs.”
According to the firm, this active strategy has resulted in a higher Bitcoin per equity share compared to passive approaches.
MicroStrategy stacking Bitcoin
MicroStrategy’s long-term financial strategy includes convertible debt, which allows the company to capitalize on Bitcoin’s potential upside while minimizing liquidation risks.
The company has raised billions of dollars via multiple debt offerings to increase its BTC holdings in recent months.
The firm most recently proposed a $500 million debt sale of convertible notes on June 13 to further boost its Bitcoin reserves. It later raised the amount to $700 million on June 14.
Bernstein believes that MicroStrategy’s proactive stance and substantial Bitcoin holdings position it to benefit significantly from the projected growth in crypto value over the coming decade.
Source:cryptoslate.com
