Benchmark Expects MicroStrategy to Maintain Rally As Bitcoin Halving Approaches

MicroStrategy's price target was increased by Benchmark from $990 to $1,875. The software firm stands to gain significantly from the impending halving of bitcoin, according to the article. By the end of 2025, the broker now expects bitcoin to be worth $150,000.  

The research report on Monday by broker Benchmark stated that MicroStrategy (MSTR) is in a prime position to gain from the upcoming bitcoin {{BTC}} halving, which is scheduled to take place around April 20 and involves a 50% reduction in the cryptocurrency's supply.  

Analyst Mark Palmer made the observation that the price of bitcoin only began to rise dramatically following each of the three prior halvings (in2012,2016, and 2020). The rate of increase in the bitcoin supply is slowed during the quadrennial halving, when the rewards for miners are decreased.  

According to Benchmark, MicroStrategy is still a buy, but the price objective has been boosted from $990 to $1,875. An increase from $125,000 to $150,000 by the end of 2025 is the underlying premise of the revised price objective. Pre-market U.S. trading saw an 11% increase in MicroStrategy shares, bringing the price to approximately $1,601.  

Palmer stated, "we expect inflows into spot bitcoin ETFs to grow dramatically once institutions begin to invest in them in earnest." He continued, "While the upcoming bitcoin halving will create a supply shock as the previous ones had, we believe the event's impact could be magnified by the concurrent demand shock created by the emergence of spot bitcoin exchange-traded funds (ETFs)."  

A distinctive business model centered on the purchase and ownership of bitcoin is employed by MicroStrategy. According to the story, the firm would reportedly keep adding to its bitcoin hoard using the money it makes from capital markets transactions and its enterprise software division's surplus.  

From 214,246 coins held as of March 19, Benchmark predicts that the corporation will control 298,246 bitcoins by the end of 2025.  

Software developer's implied premium to bitcoin, according to rival broker BTIG's report (published on Friday), is supported by investors who desire exposure to digital assets but can't invest directly in bitcoin or ETFs. The report also mentions the developer's ability to accretively raise capital to buy more BTC.  

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