United

Bitcoin

April

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MicroStrategy shares are a “buy” with a price target of $990 as the Bitcoin (<a href="https://cointelegraph.com/bitcoin-price">BTC</a>)-buying software firm is primed for major windfalls from institutional demand and April’s halving event, said investment banker Benchmark.
In a Feb. 27 research report, Benchmark senior analyst Mark Palmer wrote that MicroStrategy (MSTR) offered investors a “timely play” on the upcoming Bitcoin halving. The firm’s Bitcoin holdings have swollen to over $11 billion.
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 “Our price target for MSTR is based on our assumption that the price of Bitcoin will reach $125,000 at the end of 2025.”
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Palmer predicted MicroStrategy’s share price would also be buoyed by the increased demand for Bitcoin spurred by the new United States spot Bitcoin exchange-traded funds (ETFs).
On Feb. 26, the 10 U.S. Bitcoin ETFs — excluding Grayscale’s GBTC — witnessed a significant $519 million in net inflows and have now generated a total of more than $6 billion in net inflows <a href="https://cointelegraph.com/news/sec-spot-bitcoin-etf-approvals">since going live on Jan. 11</a>. 
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 <img src="https://s3.cointelegraph.com/uploads/2024-02/5b53f553-d4d5-4de5-9dbd-8d20006aa209.png" alt="" title="">
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 Spot Bitcoin ETFs have attracted over $6 billion in net inflows since inception. Source: Farside Investors
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Additionally, Palmer looked to the upcoming Bitcoin halving — currently expected to arrive on April 20 — as a further reason to predict upward price action for MicroStrategy. 
The <a href="https://cointelegraph.com/learn/bitcoin-halving-how-does-the-halving-cycle-work-and-why-does-it-matter">Bitcoin halving</a> refers to rewards for miners being cut in half. This reduces the future supply of new Bitcoin on the market and is widely viewed as a <a href="https://cointelegraph.com/news/one-last-chance-buy-bitcoin-bargain-prices-rekt-capital">bullish long-term catalyst</a> by crypto market pundits. 
He noted that Bitcoin’s first halving in 2012 saw its price rise from around $12 to nearly $1,000, while following the July 2016 halving, Bitcoin rallied from $650 to $2,250 within the next year. 
“The May 2020 halving preceded Bitcoin’s dramatic rise from $8,572 to an all-time high of $67,566 in 2021,” he added. 
Related: <a href="https://cointelegraph.com/news/michael-saylor-buy-bitcoin-forever-no-reason-sell">Michael Saylor to forever buy Bitcoin — ‘No reason to sell the winner’</a>
MicroStrategy employs a “levered operating strategy” — a tactic that utilizes debt financing and share sales to pay for its Bitcoin stores with no added fees — to increase its direct exposure to Bitcoin, something that Palmer believes will work in the firm’s favor assuming a continued gain in the price of Bitcoin. 
On Feb. 26, MicroStrategy <a href="https://cointelegraph.com/news/spot-bitcoin-etfs-accumulate-300-000">purchased an additional 3,000</a> BTC, bringing its total holdings to 193,000 BTC — currently worth a little more than $11 billion. 
MicroStrategy’s share price currently stands at $871, up 9.4% on the day, per TradingView <a href="https://www.tradingview.com/symbols/NASDAQ-MSTR/" target="_blank" rel="noopener nofollow">data</a>. 
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 MicroStrategy’s share price has grown by 230% in the last 12 months. Source: TradingView
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Meanwhile, Bitcoin is changing hands for $57,083 and has posted a 9.2% gain over the last week, driven in large part by strong institutional demand for the cryptocurrency. 
Magazine: <a href="https://cointelegraph.com/magazine/crypto-inevitable-all-in-meet-vance-spencer/">‘Crypto is inevitable’ so we went ‘all in’ — Meet Vance Spencer, permabull</a>

MicroStrategy a ‘timely play’ on Bitcoin halving, $990 target price: Benchmark

Cointelegraph

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