Analysts at Bernstein Forecast Bitcoin Could Hit 1 Million by 2033

Bernstein Analysts Foresee Bitcoin Surpassing $1 Million by 2033


Ruholamin Haqshanas
Latest Update:
June 14, 2024 08:22 EDT
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2 minute read


According to analysts at Bernstein, Bitcoin has the potential to exceed $1 million by 2033, with a projected peak of $200,000 by 2025.
This prediction coincides with Bernstein’s coverage initiation of MicroStrategy, a software company that is now the largest corporate holder of Bitcoin.
The research report gave MicroStrategy an outperform rating, noting that the company currently owns 1.1% of the global supply of Bitcoin, valued at around $14.5 billion.
MicroStrategy Emerges as a Key Player in the Crypto Industry
In just four years, MicroStrategy has transitioned from a small software firm to a significant player in the cryptocurrency industry.
The company’s founder and chairman, Michael Saylor, has been instrumental in establishing MicroStrategy as a prominent Bitcoin-focused entity.
Under Saylor’s leadership, MicroStrategy has attracted substantial capital, including debt and equity, enabling the company to execute an active Bitcoin acquisition strategy.
As of now, MicroStrategy holds 214,400 Bitcoin, which it began accumulating in 2020 as a reserve asset.
Bernstein initiated coverage of MicroStrategy with a price target of $2,890, while the company’s shares closed at approximately $1,484 on the Nasdaq exchange.
Analysts Gautam Chhugani and Mahika Sapra highlighted MicroStrategy’s active leveraged Bitcoin strategy, distinguishing it from passive spot exchange-traded funds (ETFs).
Over the past four years, MicroStrategy’s active approach has led to a higher amount of Bitcoin per equity share.
Bernstein’s Bitcoin price forecast is driven by the unprecedented demand from spot ETFs and the limited supply of the cryptocurrency.
The analysts now project that Bitcoin could potentially reach $500,000 by 2029, with the 2025 estimate revised from $150,000.
MicroStrategy’s long-term convertible debt strategy allows the company to capitalize on Bitcoin’s potential upside while minimizing liquidation risk associated with the cryptocurrency on its balance sheet.
In a recent move, MicroStrategy announced a $500 million debt sale of convertible notes to further strengthen its Bitcoin holdings.
This decision underscores the company’s commitment to expanding its Bitcoin portfolio and leveraging its position in the crypto market.
Corporate Bitcoin Investors Begin to Reap Profits
Several major corporate investors in Bitcoin, including MicroStrategy, have witnessed significant profit growth.
Based on data compiled by Saylortracker, at current market prices of approximately $67,000, MicroStrategy’s Bitcoin holdings now have a total valuation exceeding $14.59 billion.
This implies that the company has unrealized profits of nearly $6.5 billion on paper – representing a gain of almost 104% year-to-date from an investment initiated under Saylor in 2020.
MicroStrategy’s successful Bitcoin strategy has also prompted other public companies to consider adding Bitcoin to their balance sheets.
In April, Metaplanet announced its decision to incorporate Bitcoin into its treasury assets for various reasons, including reducing exposure to the Japanese yen amid Japan’s low-interest-rate environment.
In a shareholder update, Metaplanet expressed concerns about the yen’s vulnerability and highlighted Bitcoin’s potential as a hedge against inflation, a tool for macroeconomic resilience, and a source of long-term capital growth.