Bitcoin halving bullish for Saylor’s MicroStrategy: Berenberg Capital
The upcoming Bitcoin (BTC) halving is set to blow fresh wind in the sails of Bitcoin-focused stocks such as Michael Saylor founded tech firm MicroStrategy.
In a research note shared with Cointelegraph, New York-based investment firm Berenberg Capital Markets explained its reasons for a bullish outlook on MicroStrategy (MSTR), which Berenberg has given a $430 price target.
According to the analysts, MicroStrategy derives the bulk of its value from the 152,333 Bitcoin it held on its books as of June 28, adding that a Bitcoin halving rally could see its shares gain significantly in price.
The Bitcoin halving, which is scheduled for April 26, 2024, reduces the BTC issuance rate by 50%, significantly dampening the velocity at which new Bitcoin enters the crypto market.
Last Bitcoin ETF decision deadline: 3/19/24Bitcoin halving estimate: 4/16/24pic.twitter.com/8zxcp8TQsh
“If the historical pattern established by the first three bitcoin halvings continues to play out with the fourth halving, then the pre-halving rally would begin about four months from now,” read the note.
As Berenberg highlights, previous halvings cycles have seen the price of Bitcoin surge by a minimum of 682%. At the time of the first Bitcoin halving on November 28, 2012, the price of Bitcoin hovered around $12.
367 days later its price peaked at $1,164.
The analysts noted that while Bitcoin’s supply treads a “predetermined path,” the overall demand for Bitcoin that needs to be gauged before anyone could predict the “potential magnitude” of a future rally.
To measure this, the research looked to the recent surge in spot bitcoin ETF applications from some of the world’s “largest and highest-profile” asset managers as proof that institutional adoption of Bitcoin
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