Microstrategy’s stock is expected to soar by 64%, fueled by its bold bitcoin investment strategy, according to Bernstein analysts. Michael Saylor’s leadership and the company’s vast BTC holdings, valued at $16 billion, have played a pivotal role in its performance. However, challenges such as net losses and bitcoin volatility could complicate this forecast, despite a long-term target of $1 million per bitcoin by 2033.
Microstrategy’s Stock Forecast: A Bitcoin Bet With Big Risks
Software intelligence company Microstrategy (Nasdaq: MSTR) is expected to see its stock could climb by 64% to $290, driven by its aggressive bitcoin strategy, according to an analysis by Bernstein, a global investment research and advisory firm. As of writing, MSTR is trading at $191.09.
Bernstein analysts Gautam Chhugani, Mahika Sapra, and Sanskar Chindalia pointed to Michael Saylor’s leadership as critical to the company’s performance. They wrote in a report, published on Monday:
Michael Saylor pioneered a bitcoin treasury model for corporates.
Microstrategy has amassed about 252,220 BTC. The firm began buying bitcoin in 2020 and has continued to expand its holdings, attracting attention from market watchers.
Bernstein’s bullish forecast is based on the assumption that bitcoin will hit $1 million by 2033, with Microstrategy continuing its accumulation strategy. In June, Bernstein’s analysts updated their bitcoin price predictions, raising expectations. They projected bitcoin could reach $200,000 by 2025, $500,000 by 2029, and $1 million by 2033.
The analysts noted in their Monday report:
Since adoption of its bitcoin strategy in August 2020, MSTR’s stock is up [around] 13x, outperforming bitcoin, gold, S&P, Nasdaq, small cap software.
Microstrategy’s financial results for Q2 2024 showed a gross profit of $80.5 million, a decline from the $93.3 million earned in Q2 2023. Operating expenses surged to $280.8 million, mainly driven by a substantial $180.1 million impairment loss on its bitcoin investments. As a result, the company reported a net loss of $102.6 million.
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