Bernstein Forecasts Strategy to Acquire 1 Million Bitcoin by 2033
Analysts at Bernstein predict that Strategy, co-founded by Michael Saylor, may acquire over 1 million Bitcoin (BTC) by 2033, potentially holding 5% of BTC's total supply.
Strategy Stock (MSTR) Rating
- Bernstein assigns an “outperform” rating to Strategy's stock (MSTR) with a price target of $600, indicating a 75% upside from its current price of $335.26.
- Recent slight decline in stock value of 2.09% noted.
- Bitcoin price projections: $200,000 by end of 2025, $500,000 by 2029, and $1 million by 2033.
- Projected earnings per share expected to rise from $67.50 to $207.
Potential Holdings Increase
- In a bullish scenario, Strategy’s Bitcoin holdings could reach 5.8% of the circulating supply of approximately 19.8 million BTC, up from 2.5% currently.
- This growth could lead to estimated debt of $100 billion and equity proceeds of around $84 billion.
- A conservative case estimates holdings at about 4%, while a bearish case sees stagnation at 2.6%, risking forced liquidations.
As of March 25, Strategy held 506,137 BTC, valued at around $33.7 billion, with an average acquisition price of $66,608. Recently, they purchased an additional 6,911 BTC for $584.1 million.
Strategy's Bitcoin treasury is viewed as essential to its business model despite challenges in premium-to-net asset value valuation and aggressive acquisition pace.
On Tuesday, shares closed at $341.81, up 1.8%. Bitcoin also increased by 5% over the last two weeks, trading at $87,470.