Investment bank upgrades MicroStrategy on the assumption that Bitcoin will exceed $120,000

8 months ago 76

Assuming “BTC to exceed $120,000 by the end of 2025”

On the 27th, investment bank Benchmark announced an upgrade report that set the target price of MicroStrategy, which is known for investing in the crypto asset (virtual currency) Bitcoin (BTC), at $990.

MicroStrategy's stock price is approximately $872 at the time of writing. It has risen more than 8% since the beginning of this week. Mark Palmer, senior equity research analyst at Benchmark, argues:

Our price target for MicroStrategy is based on the assumption that the price of Bitcoin will reach $125,000 by the end of 2025.

Bitcoin prices rise due to increased demand after the U.S. Securities and Exchange Commission (SEC) approved a Bitcoin spot ETF in January, and the fourth Bitcoin halving scheduled for late April. I will continue to do so.

Palmer went on to say that the slowdown in supply due to the halving could cause Bitcoin prices to rise significantly over the next few years.

What is half-life?

It refers to the timing when the mining reward (= new issuance amount) of virtual currencies such as Bitcoin is reduced by half. Many virtual currencies have an “issuance limit” set in order to prevent inflation, and the amount of new issuance is reduced by half at each halving period that occurs at a certain period. It is also a noteworthy event unique to virtual currencies, as the scarcity value increases significantly as the supply decreases, making it easier for prices to soar.

Virtual currency glossary

connection:
“Long-term target for Bitcoin price is $400,000'' US SkyBridge founder predicts market price after halving

“Bitcoin is the exit strategy”

MicroStrategy Chairman Michael Saylor said on Bloomberg that he will continue to buy Bitcoin, even at high prices, and that Bitcoin is his exit strategy.

MicroStrategy Executive Chair Michael Saylor says the approval of spot Bitcoin ETFs is “a rising tide that is going to lift all boats” https://t.co/0X0Pcz9N8S pic.twitter.com/jA1KxQEDAW

— Bloomberg TV (@BloombergTV) February 20, 2024

He also said that Bitcoin is technically superior to traditional assets such as gold, the S&P 500, and real estate, and that he believes flows into Bitcoin from these assets will continue.

connection: Experts discuss the possibility that Bitcoin ETF assets will overtake gold ETFs

MicroStrategy just announced on the 26th that it has acquired more Bitcoin. Unrealized gains exceed $4.4 billion (662 billion yen).

This time, we acquired 3,000 BTC for $155 million (approximately 23.3 billion yen). The company's total Bitcoin holdings increased to 193,000 BTC.

connection:
MicroStrategy increases Bitcoin purchases in February BTC reaches $54,000 level for the first time this year

MicroStrategy's main business is business intelligence (BI), which provides a platform for analyzing business data, and the stock price has risen in part due to the attention it received for its Bitcoin purchasing strategy.

Chairman Saylor also said that due to the success of the Bitcoin strategy, the company will rebrand as a “Bitcoin development company.” Last year, it also revealed plans to develop a rewards platform that utilizes Bitcoin L2's “Lightning Network.”

connection:
Chairman of MicroStrategy, which owns a large amount of Bitcoin, talks about outlook and business policy on CNBC