MicroStrategy Receives ‘Outperform’ Rating As BTC Poised To Hit $1M

MicroStrategy, led by Michael Saylor, has garnered a fresh wave of optimism following Bernstein’s new “Outperform” rating for the MSTR stock. Besides, Bernstein has once again reiterated its bullish outlook on Bitcoin’s future, forecasting the cryptocurrency to reach $1 million by 2033 and a near-term peak of $200,000 by 2025. Notably, the Bitcoin’s previous target for 2025 was $150,000.

Meanwhile, this latest prediction aligns with MicroStrategy’s strategy of leveraging Bitcoin, positioning the company for significant growth.

Bernstein Gives Outperform Rating To MicroStrategy

According to recent reports, Bernstein has initiated an “Outperform” rating for MicroStrategy (MSTR) stock. Notably, this prediction has bolstered investor sentiment, as it sets a price target of $2,890 for the MSTR stock.

This target suggests a 90% upside from its current valuation, reflecting confidence in MicroStrategy’s strategy of integrating Bitcoin into its corporate treasury. It’s worth noting that the company, led by Michael Saylor, has transformed from a traditional software firm into a major Bitcoin holder. It now currently holds more than 214,400 BTC, equivalent to over 1.1% of the global supply.

Meanwhile, Bernstein’s projections are grounded in a detailed analysis of MicroStrategy’s Bitcoin net asset value (NAV) and its innovative use of convertible debt. The firm’s valuation considers various scenarios for Bitcoin’s price, leading to a forecasted premium of 50% to MicroStrategy’s Bitcoin NAV by 2025.

Notably, Bernstein highlights that the current Bitcoin price already supports MicroStrategy’s debt strategy, minimizing the risk associated with its convertible senior notes. In addition, the latest analysis underscores MicroStrategy’s ability to navigate potential market fluctuations.

By leveraging long-term convertible debt, the company can capitalize on Bitcoin’s anticipated price surge without facing immediate liquidation risks. This strategy provides MicroStrategy with a robust framework to benefit from Bitcoin’s upside potential while maintaining financial stability.

Also Read: Bitcoin Price Risks Crashing To $48K, Says Analyst Who Predicted Crash to $16K in 2022

Bitcoin Price Projection

Bernstein’s forecast for Bitcoin is striking, predicting the cryptocurrency will hit $1 million by 2033. Short-term projections are equally optimistic, with expectations of reaching $200,000 by 2025 and $500,000 by 2029. This bullish outlook is driven by anticipated demand from spot exchange-traded funds (ETFs) and Bitcoin’s limited supply.

Meanwhile, the report notes that MicroStrategy’s aggressive accumulation of Bitcoin since 2020 positions it uniquely to benefit from these trends. The company has made substantial investments, transforming its balance sheet and aligning its corporate strategy with the cryptocurrency’s potential growth.

As Bitcoin demand escalates, especially with institutional involvement through ETFs, MicroStrategy’s extensive holdings could translate into substantial financial gains, the report suggested. Notably, MicroStrategy recently proposed a $500 million sale of convertible senior notes to further bolster its Bitcoin reserves.

This move reflects the company’s commitment to further bolster its Bitcoin engagement. Besides, MicroStrategy’s Michael Saylor is one of the prominent supporters of Bitcoin, as evidenced by his increased focus and social media updates.

However, despite that, Bitcoin price has struggled recently, trading below the $67,000 level. In addition, the U.S. Spot Bitcoin ETF also noted mixed trading recently, after witnessing a robust influx over the past few weeks.

Meanwhile, MSTR stock price was up 1.59% to $1,507.52 in the pre-market session today, after closing at 7.5% down in the prior day. On a year-to-date (YTD) basis through June 13, MicroStrategy stock rose over 116%.

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Rupam, a seasoned professional with 3 years in the financial market, has honed his skills as a meticulous research analyst and insightful journalist. He finds joy in exploring the dynamic nuances of the financial landscape. Currently working as a sub-editor at Coingape, Rupam’s expertise goes beyond conventional boundaries. His contributions encompass breaking stories, delving into AI-related developments, providing real-time crypto market updates, and presenting insightful economic news. Rupam’s journey is marked by a passion for unraveling the intricacies of finance and delivering impactful stories that resonate with a diverse audience.

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