Bitcoin at $1m? Bernstein Says as It Initiates Coverage of MicroStrategy

Key Takeaways

• Bernstein predicts Bitcoin could reach $200,000 by 2025 and $1 million by 2033.
• MicroStrategy now holds 1.1% of global Bitcoin supply, valued at $14.5 billion, under an active acquisition strategy.
• The company uses long-term convertible debt to minimize liquidation risk, recently proposing a $500 million debt sale to boost its Bitcoin holdings.

According to a recent research report by Bernstein, the price of Bitcoin (BTC) is projected to reach $1 million by 2033 and a cycle-high of $200,000 by 2025. This optimistic forecast coincides with Bernstein’s initiation of coverage on MicroStrategy, a software developer and the largest corporate owner of Bitcoin, with an “outperform” rating.

MicroStrategy, based in Tysons Corner, Virginia, now holds 1.1% of the global Bitcoin supply, valued at approximately $14.5 billion. Over the past four years, the company has transformed from a small software firm into a significant player in the cryptocurrency market. Bernstein set a price target of $2,890 for MicroStrategy shares, which closed at around $1,484 on Thursday. The firm currently owns 214,400 Bitcoin, having started its acquisition in 2020 when it adopted Bitcoin as a reserve asset.

Michael Saylor, the company’s founder and chairman, has become a prominent advocate for Bitcoin, positioning MicroStrategy as a leading Bitcoin-focused company. This strategic shift has enabled the company to attract substantial capital, both debt and equity, to fuel its active Bitcoin acquisition strategy. Analysts Gautam Chhugani and Mahika Sapra highlighted that MicroStrategy’s active, leveraged approach to Bitcoin acquisition has resulted in a higher Bitcoin per equity share compared to passive spot exchange-traded funds (ETFs).

Bernstein’s BTC price forecast is influenced by the significant demand from spot ETFs and the limited supply of Bitcoin. The broker now predicts Bitcoin could reach $500,000 by 2029, up from a previous estimate of $150,000 for 2025. MicroStrategy’s use of long-term convertible debt provides the company with the flexibility to capitalize on Bitcoin’s potential upside while minimizing the risk of liquidation of its cryptocurrency holdings.

In line with its aggressive Bitcoin acquisition strategy, MicroStrategy recently proposed a $500 million debt sale of convertible notes to further increase its Bitcoin holdings.

Conclusion

More and more companies are recognizing Bitcoin’s potential as a store of value and adopting it as a reserve asset. With Bitcoin outperforming any other asset class over the past decade, MicroStrategy’s bold strategy has so far paid off. This reflects a growing trend of institutional adoption and highlights an exciting future for Bitcoin, as both companies and individuals increasingly turn to it for wealth building and preservation.
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