Berenberg Capital Market’s Bull Case for Microstrategy: Bitcoin Halving to Drive Stock Rally
Berenberg Capital Market has outlined its bullish case for Michael Saylor’s Microstrategy, highlighting the upcoming Bitcoin halving as a key factor. The research note emphasizes that the firm’s value is mainly derived from its significant Bitcoin holdings. Here are the key points:
– Microstrategy’s value is largely based on its balance sheet, which holds over 150,000 bitcoins.
– The historical trend of Bitcoin rallying after halving events is expected to repeat.
– The fourth Bitcoin halving is projected to take place on April 26, 2024.
– The research firm anticipates a pre-halving rally to begin approximately four months prior to the event.
– If the previous halvings are any indication, the rally could continue until around October 2025.
According to Berenberg Capital Market, there is a strong correlation between Microstrategy’s stock price and the price of Bitcoin, with a correlation coefficient of approximately 0.90.
Microstrategy’s stock has already seen significant growth this year, increasing by over 181%. On Monday, it rose by 7% to close at $407.71.
Hot Take
Berenberg Capital Market’s analysis suggests that Microstrategy’s stock price could experience a rally in tandem with Bitcoin’s price following the upcoming halving event. With Microstrategy’s substantial Bitcoin holdings, investors may see this as an opportunity to capitalize on the potential growth in the cryptocurrency market.
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