MicroStrategy's Bitcoin Strategy Could Propel Stock Value by 64% as Analysts Predict $1 Million Bitcoin by 2033

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MicroStrategy's investment in Bitcoin could lead to a 64% increase in its stock value. Analysts have set a price target of $290. They believe Bitcoin might reach $1 million by 2033. This fuels a positive outlook for MicroStrategy's investment strategy.

According to Bernstein, MicroStrategy’s MSTR stock could rise significantly due to its proactive approach to acquiring Bitcoin. The company, under Executive Chairman Michael Saylor, has built a substantial Bitcoin holding worth around $16 billion. This places MicroStrategy among the top 10 holders of the cryptocurrency.

Analysts Gautam Chhugani, Mahika Sapra, and Sanskar Chindalia praised Saylor’s strategy. They said, “Michael Saylor pioneered a Bitcoin treasury model for corporates,” as reported by DL News.

The analysts are optimistic about Bitcoin's future. They expect it to hit $1 million by 2033 and anticipate that MicroStrategy will continue to buy more cryptocurrency. This aligns with the market's excitement around Bitcoin, which has jumped nearly 50% in value this year.

Since launching its Bitcoin strategy in 2020 through convertible note sales, MicroStrategy has seen impressive results. The stock is up about 13 times since adopting this strategy in August 2020, outperforming Bitcoin, Gold, the S&P, Nasdaq, and small-cap software.

However, this strategy isn't without risks. Bernstein pointed out a scenario where Bitcoin could hit $200,000 by the end of next year but then stagnate. This could force MicroStrategy to sell its holdings to meet shareholder demands, risking financial instability.

Despite these challenges, MicroStrategy's market cap has soared to over $35 billion, making it comparable to many S&P 500 companies. But keep in mind, the company reported a net loss of $102 million in the second quarter of 2024. This makes its inclusion in the S&P 500 unlikely in the near future.

On another note, Riot Platforms is exploring opportunities in artificial intelligence while staying focused on Bitcoin mining.

This content was partially generated using AI tools and reviewed by Benzinga editors. Market news and data are provided by Benzinga APIs.

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