MicroStrategy to Benefit Greatly from the Upcoming Halving: Berenberg
- MicroStrategy is set to greatly benefit from the upcoming Bitcoin halving, said Berenberg Capital Markets.
- The pre-halving rally is expected in four months and will continue until October 2025, as per previous trends.
- The target price put by Berenberg Capital Markets on MicroStrategy’s MSTR stock is $430.
- “The correlation between the company’s share price and the price of bitcoin is ~0.90,” the firm added.
An American business intelligence and mobile software company based in Tysons, Virginia, MicroStrategy, will greatly benefit from the upcoming halving process of the world’s largest cryptocurrency, Bitcoin (BTC), according to a report from Berenberg Capital Markets, an investment firm based in New York.
MicroStrategy was founded in 2010 by Michael Saylor, who is an active proponent of Bitcoin. Under Saylor’s rule as the CEO, the company amassed a huge quantity of BTC, and now that he has moved to the position of Executive Chairman, his company continues to purchase additional BTC, becoming the largest corporate holder of the leading crypto coin with 152,333 BTC as of June 28.
Berenberg claims that MicroStrategy derives a bulk of its value from the 152,333 BTC that it holds on its corporate balance sheet, adding that a rally in the leading cryptocurrency could greatly benefit the American company.
“[It] is our expectation that the price of Bitcoin will repeat its historical pattern of rallying both ahead of and following each Bitcoin halving,” said Berenberg Capital Markets.
In a report sent to TheBlock, Berenberg Capital Markets stated that, taking into account the past three previous Bitcoin price surges, the pre-halving rally can begin in four months. Berenberg noted that “if a rally were to occur after the fourth halving, and if it were as long-lived as the rallies that occurred after the past couple of halvings, then it would continue until around October 2025.”
“If the fourth bitcoin halving features the kind of strong rally in the price of bitcoin that occurred prior to and following the first three halvings, then we believe it is likely that MSTR’s stock would rally along with it; the correlation between the company’s share price and the price of bitcoin is ~0.90,” the firm added.
Additionally, the target price put by Berenberg on MicroStrategy’s MSTR stock is $430. More importantly, the price of MSTR stock rose 7% post this report and as of Monday, MSTR trades at $407.71.
As reported earlier by BitcoinWisdom, MicroStrategy is also set to roll out Bitcoin Lightning Network-powered solutions and applications next year, another event which could affect the company’s stock prices.
A crypto journalist with over 3 years of experience in DeFi, NFT, metaverse, etc. Parth has worked with major media outlets in the crypto and finance world and has gained experience and expertise in crypto culture after surviving bear and bull markets over the years.
