A Potential 49% Upside in MicroStrategy’s Shares
Shares of MicroStrategy are already up an impressive 533% year-to-date, more than triple the return of Nvidia over the same period. However, according to Bernstein analysts, the rally in MicroStrategy could intensify even further.
Unprecedented Bitcoin Strategy
MicroStrategy’s approach to acquiring and holding bitcoin is unlike anything seen on Wall Street. The company has positioned itself as a pioneer in the corporate world by adding cryptocurrency to its balance sheet. This strategy has allowed MicroStrategy to aggressively raise capital to buy more bitcoin.
Key Factors Driving MicroStrategy’s Bullish Case
- Unprecedented Bitcoin Strategy: MicroStrategy’s approach to acquiring and holding bitcoin is unlike anything seen on Wall Street.
- Pioneer in Corporate World: The company has positioned itself as a pioneer in the corporate world by adding cryptocurrency to its balance sheet.
- Aggressive Capital Raising: MicroStrategy has been able to aggressively raise capital to buy more bitcoin.
Bernstein’s Projections for MicroStrategy’s Bitcoin Holdings
According to Bernstein analyst Gautam Chhugani, MicroStrategy could eventually own 4% of the total bitcoin supply by the end of 2033. This would be a significant increase from its current holdings of 1.8% of the total supply.
Key Takeaways from Bernstein’s Projections
- Potential Increase in Bitcoin Holdings: MicroStrategy could own 4% of the total bitcoin supply by the end of 2033.
- Significant Increase: This would be a significant increase from its current holdings of 1.8% of the total supply.
MicroStrategy’s Market Valuation and Premium to Bitcoin Holdings
MicroStrategy trades at almost a 200% premium to the value of its $36 billion bitcoin stash. According to Chhugani, this premium could stay higher than historical averages if bitcoin bull markets continue.
Key Takeaways from MicroStrategy’s Market Valuation and Premium to Bitcoin Holdings
- Significant Premium: MicroStrategy trades at almost a 200% premium to the value of its $36 billion bitcoin stash.
- Potential for Higher Premiums: The premium could stay higher than historical averages if bitcoin bull markets continue.
Bernstein’s Price Target for Bitcoin
Bernstein analyst Gautam Chhugani estimates that bitcoin could hit cycle peaks of:
- $200,000 in 2025
- $500,000 in 2029
- $1 million by 2033
Key Takeaways from Bernstein’s Price Target for Bitcoin
- Potential for Higher Prices: Chhugani estimates that bitcoin could hit cycle peaks of $200,000 in 2025, $500,000 in 2029, and $1 million by 2033.
- Structural Bull Market: According to Chhugani, the bull market is structural, driven by conducive regulation, institutional adoption, and favorable macro conditions.
Conclusion
MicroStrategy’s unique bitcoin strategy has positioned it as a pioneer in the corporate world. With a significant increase in its potential bitcoin holdings and a premium to its current valuation, shares of MicroStrategy may continue their gravity-defying run even further. According to Bernstein analysts, the company’s price target could reach $600, representing a 49% upside from current levels.
References
- Bernstein Analysts: Gautam Chhugani, analyst at Bernstein.
- MicroStrategy: A software firm led by founder and chairman Michael Saylor.
- Bitcoin: A decentralized digital currency.
