© Reuters. Microstrategy (MSTR) Started with a Buy Rating on Benchmark Based on $125,000 Bitcoin Forecast
Microstrategy, Inc. (NASDAQ 🙂 was started with a Buy rating and a price target of $990 per share on Benchmark in a company note to clients on Tuesday.
Analysts claimed the stock is a timely play for the upcoming Bitcoin halving. The company's price target for the stock is based on its assumption that the price of bitcoin will reach $125,000 by the end of 2025, up from yesterday's price of $54,578.
The rating and price target are “based on a sum-of-the-parts analysis that combines (1) our estimate of the year-end 2025 value of the company's bitcoin holdings and (2) our estimate of the year-end value 2025. of its business intelligence software business,” Benchmark explained.
“In particular, the first three halvings were associated with bull runs in the price of bitcoin,” they added. “Over the year after the first halving in November 2012, the price of bitcoin rose from around $12 to almost $1,000. After the July 2016 halving, bitcoin rose from $650 to $2,550 in 12 months”.
Additionally, the firm feels that the surge in demand for Bitcoin resulting from the launch of multiple Bitcoin spot ETFs, combined with the reduced pace of coin supply resulting from the halving, “has the potential to drive the price of the cryptocurrency significantly higher.” high for the next two years.”
“While some observers have suggested that the introduction of spot bitcoin ETFs in the US would weigh on MSTR's share price, given that equity investors who bought the stock as a bitcoin proxy have a new range of such proxies to choose from, the stock continues to offer In our view, investors offer a unique value proposition,” Benchmark explained.
