Benchmark, a boutique investment banking firm, has initiated coverage of MicroStrategy with a buy rating and a share price target of $990. This positive forecast is based on the projected valuation of MicroStrategyโs bitcoin holdings and its business intelligence software activities by the end of 2025. Benchmark believes that the approval of multiple spot bitcoin ETFs and the upcoming halving could drive the bitcoin price higher, ultimately benefiting MicroStrategy.
The Bitcoin Halving: What You Need to Know
The next bitcoin halving is expected to take place in April of this year. This event occurs approximately every four years and reduces the block reward that miners receive for adding new blocks to the blockchain by 50%. The previous halving occurred in 2020, reducing the block reward from 12.5 bitcoin to 6.25 bitcoin.
- The next halving will further decrease the block reward from 6.25 BTC to 3.125 BTC per block.
- This mechanism is built into the bitcoin protocol to control the supply of new bitcoins, making them more scarce over time.
Bitcoin Price Movement
In the past 24 hours, the price of bitcoin has increased by over 9% and currently stands at $57,210. Meanwhile, the GM 30 Index, which represents a selection of the top 30 cryptocurrencies, has seen a 4.44% increase to reach a value of 122.45.
Hot Take: Potential Impact of Halving on Bitcoin Price
According to Benchmark Senior Equity Research Analyst Mark Palmer, the upcoming halving has the potential to drive the price of bitcoin significantly higher in the next couple of years. Hereโs why:
- The reduced pace of supply resulting from the halving can lead to a scarcity of bitcoins, increasing their value.
- The approval of spot bitcoin ETFs in the U.S. by the SEC could generate increased demand for bitcoin, further driving up its price.
Considering these factors, Benchmark has set a price target of $990 for MicroStrategyโs shares based on their assumption that the price of bitcoin will reach $125,000 by the end of 2025.
In Summary
Benchmark has initiated coverage of MicroStrategy and provided a buy rating along with a share price target of $990. This positive outlook is based on the projected valuation of MicroStrategyโs bitcoin holdings and its business intelligence software activities by the end of 2025. The upcoming bitcoin halving and potential approval of spot bitcoin ETFs in the U.S. are expected to drive the price of bitcoin higher, benefiting both MicroStrategy and investors.
Hot Take: Bitcoin Halving and Price Movement
The next bitcoin halving is approaching, which will reduce the block reward for miners and potentially increase the scarcity and value of bitcoin. Additionally, recent price movements have shown an increase in the value of bitcoin, indicating a positive market sentiment. As an investor or crypto enthusiast, it is crucial to stay informed about these events and their potential impact on the cryptocurrency market.
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