MicroStrategy Price Target Set at $990 on Bitcoin Growth Forecast

Published: Feb 27, 2024
Written By:
Vignesh Karunanidhi
Milk Road Writer

Investment banking firm Benchmark initiated coverage of business intelligence firm MicroStrategy on Tuesday, publishing a ‘buy’ rating and a 2025 share price target of $990.

The bold MicroStrategy forecast centers on an assumed future appreciation of the company’s sizable Bitcoin holdings. The analysts expect the BTC stash to swell on factors like SEC spot ETF approvals and upcoming Bitcoin halving.

Key Details:

  • Benchmark sets the MicroStrategy price target at $990.
  • Forecast based on Bitcoin hitting $125,000 by the end of 2025.
  • SEC spot ETF approvals seen boosting bitcoin demand
  • The upcoming BTC halving is also expected to lift pricing.

MicroStrategy shares surged over 8% to $860 on Tuesday’s opening based on the optimistic coverage.

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“Our price target for MicroStrategy is based on our assumption that the price of bitcoin will reach $125,000 at the end of 2025, driven by increased demand resulting from the SEC’s approval in January of spot bitcoin ETFs in the U.S., and the impact of the fourth bitcoin halving,” said Benchmark analyst Mark Palmer.

Spot Bitcoin ETF approval opened gates for institutions

The next halving, slated for April 2025, will reduce Bitcoin mining rewards by 50%, from the current 6.25 BTC per block to 3.125 BTC. Post-halving constrained bitcoin supplies historically put upward pressure on prices.

Additional Details:

  • MicroStrategy holds over 193,000 BTC worth billions.
  • Stock prices are highly correlated with underlying BTC holdings.
  • Analysts see halving and ETFs as demand catalysts.
  • Recent ETF approvals opened floodgates for institutions.

With SEC-approved BTC ETFs also now opening the crypto market to deeper institutional pools of capital, analysts see demand for scarce BTC supplies surging even higher over the medium term.

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Given MicroStrategy’s enormous balance sheet exposure to BTC via 193,000 BTC worth billions, the company’s fortune and stock price remain highly sensitive to the cryptocurrency’s valuation.

On that basis, Benchmark’s $990 price target implies considerable additional upside for both BTC and MicroStrategy shares through 2025.

According to Saylor Tracker, the current BTC holding of MicroStrategy stands at $11.01 billion. The Bitcoin holding now stands at an unrealized profit of $4.875 billion.

Vignesh Karunanidhi

Vignesh has been a seasoned professional in the crypto space since 2017. He has been writing for over 6 years and specializes in writing and editing various types of crypto content, including news articles, long-form pieces, and blog posts, all focused on sharing the beauty of blockchain and crypto.

Vignesh Karunanidhi
Milk Road Writer
Vignesh has been a seasoned professional in the crypto space since 2017. He has been writing for over 6 years and specializes in writing and editing various types of crypto content, including news articles, long-form pieces, and blog posts, all focused on sharing the beauty of blockchain and crypto.