- Benchmark anticipates MicroStrategy to gain from the Bitcoin halving, citing historical post-halving BTC price surges.
- The firm’s price target for MicroStrategy jumps to $1,875, reflecting optimism for Bitcoin’s future value.
- MicroStrategy’s strategy of accumulating Bitcoin positions it uniquely within the digital asset space.
Brokerage firm Benchmark has highlighted MicroStrategy’s promising position ahead of the anticipated Bitcoin halving event around April 20. This event, known for reducing the new supply of Bitcoin by half, has historically been a precursor to significant price increases for the cryptocurrency.
Elevated Expectations for MicroStrategy
Benchmark has significantly revised its price target for MicroStrategy, setting it at $1,875, up from the previous $990. This adjustment stems from a bullish outlook on Bitcoin’s price trajectory, projecting a rise to $150,000 by the end of 2025. This optimism has translated into a notable uptick in MicroStrategy’s share value, which saw an increase of over 11% in early trading sessions.
Strategic Positioning Amidst Market Changes
Analyst Mark Palmer from Benchmark has pointed out that the upcoming halving could not only restrict Bitcoin’s supply but also coincide with a surge in demand, especially with the advent of spot Bitcoin ETFs. This unique scenario could amplify the halving’s impact on Bitcoin’s value, benefiting MicroStrategy due to its substantial Bitcoin holdings.
MicroStrategy’s Bitcoin-Centric Model
MicroStrategy has distinguished itself through its strategy of accumulating Bitcoin, funded by capital market activities and its core enterprise software business. The company’s commitment to expanding its Bitcoin reserves is expected to result in ownership of 298,246 bitcoins by the end of 2025, up from the current 214,246.
Investor Appeal and Capital Strategies
The company’s approach to Bitcoin investment has drawn attention from investors seeking digital asset exposure without direct cryptocurrency or ETF investments. This interest is bolstered by MicroStrategy’s adeptness at raising capital for further Bitcoin acquisitions, enhancing its appeal as a conduit for digital asset exposure in traditional investment portfolios.
