Bernstein: Expects Strategy's Bitcoin holdings to increase to 1 million coins, raising its price target to $600

ChainCatcher news, analysts at the research and brokerage firm Bernstein have updated their price model for Strategy (formerly known as MicroStrategy) following the release of its fourth-quarter financial results and the latest BTC acquisition news. In their latest report to clients, the analysts rated Strategy as outperforming the market, raising the target price by 75% to $600.

According to Bernstein's bullish forecast, Strategy's Bitcoin holdings are expected to more than double, reaching about 5.8% of the current circulating supply of 19.8 million BTC, up from approximately 2.5% now. This assumes that Strategy can significantly expand its Bitcoin acquisition plan, while capital markets are more accommodative, interest rates are lower, and the bull market cycle continues. The analysts stated that under these circumstances, Strategy's debt (including preferred stock) would rapidly grow from the current $11 billion to about $100 billion, with equity returns reaching approximately $84 billion.

The analysts expect Bitcoin to reach around $200,000 by the end of 2025, $500,000 by the end of 2029, and $1 million by the end of 2033, with intermittent one-year bear markets occurring in between.