MicroStrategy is subject to a positive evaluation, receiving a buy rating and a price target of 990 dollars according to the latest report from Benchmark.
This coverage was started with optimistic perspectives, with the price target derived from the forecast that the value of bitcoin will reach $125,000 by the end of 2025. Let’s see all the details below.
MicroStrategy receives a buy rating in Benchmark’s report
As anticipated, the specialized financial consulting company, Benchmark, has recently initiated coverage on MicroStrategy, presenting a research report with a buy rating and a price target for the shares set at 990 dollars.
The projection is based on the expected evaluation of the company’s holdings in Bitcoin and the estimated performance of its business intelligence software activities by the end of 2025.
Benchmark has indicated that the approval of more spot Bitcoin ETFs and the upcoming halving could positively influence the price of bitcoin.
Mark Palmer, Senior Equity Research Analyst at Benchmark, explained in the report the following:
“Our price target for MicroStrategy is based on the assumption that the value of bitcoin will reach $125,000 by the end of 2025. This forecast is driven by the increasing demand, facilitated by the approval, which took place in January, of bitcoin spot ETFs in the United States by the SEC, and the impact of the fourth bitcoin halving expected by the end of April.”
Bitcoin Halving in April: 50% reduction in miner rewards
The next halving of Bitcoin is scheduled for April of this year. In particular, it will involve a significant reduction of 50% in the reward awarded to miners for validating and adding new blocks to the blockchain.
Every 210,000 blocks mined, approximately every four years, the halving occurs. The last one occurred in 2020, bringing the block reward from 12.5 bitcoin to 6.25 Bitcoin.
With the next halving, the block reward will once again be reduced, going from the current 6.25 BTC +7.35% to 3.125 BTC per block. This mechanism, programmed in the Bitcoin protocol, aims to regulate the supply of new Bitcoins, making them rarer over time.
In the last 24 hours, the world’s largest cryptocurrency has experienced a decrease of over 9%, reaching $57,210 at 10:34 PM ET, according to the latest data.
Meanwhile, the GM 30 index, representing the 30 main cryptocurrencies, has grown by 4.44% reaching 122.45.
MicroStrategy acquires another $155 million in Bitcoin
The Bitcoin advocate and former CEO of MicroStrategy, Michael Saylor, has announced a significant increase in Bitcoin acquisitions this week. MicroStrategy’s total investments in Bitcoin have reached a new record of over $10.79 billion.
With the recent purchase of 3,000 BTC worth 155 million dollars, made by Saylor, MicroStrategy’s already substantial holdings in the cryptocurrency sector have been further strengthened.
With current market rates, which are hovering around $55,840 per Bitcoin on average, MicroStrategy’s Bitcoin portfolio has reached an astonishing value of over $10.87 billion.
This translates into impressive unrealized profits, exceeding 4.7 billion dollars. Demonstrating a remarkable return of over 75% since the beginning of the year compared to the initial investment in 2020 under Saylor’s guidance.
Saylor announced that MicroStrategy’s investment in Bitcoin was made at an average entry price of $51,813.
This recent acquisition further consolidates MicroStrategy’s dominant position in the cryptocurrency market. In particular, bringing their total holdings to approximately 193,000 Bitcoin.
The visionary Saylor, who initiated MicroStrategy’s Bitcoin investment strategy in 2020 as a hedge against inflation and an alternative to cash reserves, has reiterated his long-term commitment to the cryptocurrency.
In a recent interview on Bloomberg TV, he emphasized the company’s intention to firmly hold onto its Bitcoin, stressing that “there is no reason to sell the winner”.
The recent purchases by MicroStrategy, revealed in a document filed with the United States Securities and Exchange Commission, were made between February 15 and 25.