Strategy could own over 1 million BTC by 2033 – Bernstein

Bernstein believes Strategy, formerly known arsenic MicroStrategy, could amass much than 1 cardinal Bitcoin (BTC) by 2033 successful a bullish marketplace cycle, Benzinga reported connected March 26, citing a probe note.

The projection issued by Bernstein analysts, outlines 2 vastly antithetic paths for the institution depending connected macroeconomic conditions and Bitcoin’s semipermanent terms trajectory.

Bull vs. carnivore scenario

In the optimistic scenario, Strategy would grow its holdings from the existent 506,137 BTC to 1,013,000 BTC — astir 5.8% of Bitcoin’s existent circulating proviso — assuming Bitcoin climbs to $200,000 by precocious 2025, $500,000 by 2029, and hits $1 cardinal by 2033.

To money that level of accumulation, Strategy would apt trust connected continued entree to superior markets, perchance expanding its full indebtedness tenfold to $100 cardinal portion raising $84 cardinal successful equity.

The analysts emphasized that this trajectory hinges connected debased involvement rates and beardown capitalist demand.

In contrast, the carnivore lawsuit suggests a much constrained future. If Bitcoin reaches a section highest successful 2025 and past enters a prolonged downturn, Strategy’s BTC holdings whitethorn level disconnected adjacent 514,800 BTC — conscionable 2.6% of supply.

This would unit the steadfast to halt further acquisitions and perchance liquidate portion of its treasury to negociate indebtedness and dividends. Under this base-case model, indebtedness would emergence to $51 billion.

Outperform standing maintained

Despite the risk, Bernstein reaffirmed an “outperform” standing connected Strategy and acceptable a $600 terms people — representing a 75% upside from existent levels

The firm’s valuation exemplary applies a 2x EV/sales aggregate connected the bundle conception and a 55% premium connected its Bitcoin reserves, a fig successful enactment with its mean marketplace premium since pivoting to BTC.

Strategy’s latest acquisition — 6,911 BTC for $584.1 cardinal betwixt March 17 and March 23 — further entrenched its committedness to Bitcoin, lifting its full holdings beyond the 500,000 BTC mark.

The institution present owns much BTC than immoderate different publically traded entity, drafting involvement from retail and organization investors alike.

Bernstein’s investigation signals continued organization involvement successful Strategy’s leveraged vulnerability to Bitcoin. The firm’s attack remains a defining illustration of however firm equilibrium sheets are being restructured astir Bitcoin.

The station Strategy could ain implicit 1 cardinal BTC by 2033 – Bernstein appeared archetypal connected CryptoSlate.