Analysts at Bernstein have made a bold prediction regarding MicroStrategy, now known as Strategy, the Bitcoin proxy firm co-founded by Michael Saylor. They forecast that it could amass over 1 million Bitcoin (BTC) by 2033, potentially positioning Strategy to hold 5% of BTC\u2019s total supply.\u00a0<\/p>\n
Led by analyst Gautam Chhugani, Bernstein\u2019s research note reflects an updated bullish case <\/a>based on Strategy\u2019s strong Q4 financial results and its recent aggressive Bitcoin purchases.\u00a0<\/p>\n The firm has assigned an \u201coutperform\u201d rating to Strategy\u2019s stock (MSTR) with a price target of $600, suggesting a potential upside of 75% from its current trading level.As of now, Strategy\u2019s stock is priced at $335.26, having experienced a slight decline of 2.09% recently.\u00a0<\/p>\n Bernstein\u2019s analysis indicates that Bitcoin <\/a>could reach $200,000 by the end of 2025, $500,000 by 2029, and soar to $1 million by 2033, reflecting a potential 1,044% increase for the market\u2019s leading cryptocurrency in the next 8 years from current valuations.\u00a0<\/p>\n This projected growth in Bitcoin\u2019s value is expected to significantly enhance Strategy\u2019s earnings per share<\/a>, which are anticipated to rise to $207, up from the current $67.50.<\/p>\n In a \u201cbull case\u201d scenario, the analysts predict that Strategy\u2019s Bitcoin holdings could increase to represent 5.8% of the current circulating supply<\/a> of approximately 19.8 million BTC, compared to only 2.5% at present, assuming favorable capital market conditions with low interest rates and a sustained bull cycle in cryptocurrency.<\/p>\n However, with this growth comes a substantial increase in debt, which Bernstein estimates could reach $100 billion, coupled with equity proceeds of around $84 billion.\u00a0<\/p>\n In a more conservative base case, the analysts expect Strategy\u2019s holdings to climb to about 4% of Bitcoin\u2019s circulating supply, while a bear case could see stagnation at approximately 2.6%, potentially leading to forced liquidations of assets<\/a>.<\/p>\n As of March 25, Strategy owned 506,137 Bitcoin, acquired at an average price of $66,608, which equates to a total value of around $33.7 billion. Recently, the company made headlines by purchasing an additional 6,911 BTC for $584.1 million through a combination of selling MSTR stock and issuing perpetual preferred shares (noted as STRK and STRF).\u00a0<\/p>\nHoldings Set To Surge To 5.8% Of Supply<\/h2>\n