Investment firm Bernstein has significantly raised its price target for MicroStrategy (MSTR) to $600 by the end of 2025, according to a Monday research note. Per a report by James Hunt for The Block, Bernstein’s analysts, led by Gautam Chhugani, project that MicroStrategy’s Bitcoin holdings could expand from its current 1.7% to approximately 4% of the total circulating supply over the next decade.
The bullish outlook comes as MicroStrategy’s stock has surged over 515% year-to-date, closing at $421.88 on Friday.
Per Hunt’s report, MicroStrategy recently executed its largest Bitcoin acquisition to date, purchasing 51,780 BTC for about $4.6 billion at an average price of $88,627 per bitcoin between November 11-17, bringing its total holdings to 331,200 BTC. Well, even though his report was only published a few hours ago, a few minutes ago, MicroStrategy co-founder and executive chairman Michael Saylor took to X to announce an even larger, more recent BTC purchase, which brings their total holdings to 386,700 bitcoins, which have been acquired for around $21.9 billion at a cost of roughly $56,761 per bitcoin:
https://twitter.com/saylor/status/1861033309934862601
Bernstein’s analysis rests on three key factors: the sustainability of Bitcoin’s bull market, MicroStrategy’s liquidity position, and its ability to scale capital long-term. The analysts express confidence in Bitcoin’s current market strength, citing favorable regulatory expectations under the incoming Trump administration and growing institutional adoption.
According to Bernstein, MicroStrategy appears to be ahead of schedule in its ambitious $42 billion capital raising plan, having already secured $3 billion in convertible debt and $6.6 billion in equity this month alone. The analysts expect the company could complete its planned fundraising within 18 months, well ahead of its three-year target.
However, not all market observers share this optimistic view. The most notable of these is Citron Research, which last week announced a short position in MSTR, noting that while they remain bullish on Bitcoin, they believe MicroStrategy’s stock has become overvalued.
In Bernstein’s “base case” scenario, the company could hold around 830,000 BTC by 2033, potentially worth $830 billion if Bitcoin reaches $1 million per coin.
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