Saylor's MicroStrategy Will Benefit From Bitcoin's Halving, Berenberg Capital Report

According to analysts, the next pre-halving surge for Bitcoin might start within the next four months.

Source: www.analyticsinsight.net

The imminent Bitcoin halving is expected to provide equities with a focus on Bitcoin new momentum, including Michael Saylor's software company MicroStrategy. Berenberg Capital Markets, a New York-based investment company with a $430 price objective for MicroStrategy (MSTR), outlined its rationale for having a strong view in a research report shared with Cointelegraph. The analysts assert that MicroStrategy derives the majority of its worth from the 152,333 Bitcoin it has on hand as of June 28 and add that a rally for the Bitcoin halving might result in a big price increase for its shares.

It anticipates that the price of Bitcoin will continue to rise both before and after each halving as it has in the past. The 50% reduction in BTC issuance rate due to the April 26, 2024, Bitcoin halving would drastically slow the rate at which new Bitcoin hits the cryptocurrency market. If the previous trend generated by the first third bitcoin halving proceeds to play out throughout the subsequent halving, then the pre-halving rise could begin approximately four months from today according to the note.

As Berenberg points out, the price of Bitcoin has increased by at least 682% over prior rounds of halving. The price of Bitcoin was roughly $12 at the time of the first Bitcoin halving on November 28, 2012, and it reached a high of $1,164 367 days later. While Bitcoin's supply follows a predetermined path, the researchers pointed out that before anybody could estimate the potential magnitude of a future rise, the entire demand for Bitcoin needed to be assessed.

As evidence that institutional acceptance of Bitcoin is increasing, the report used the recent jump in spot Bitcoin ETF applications from some of the world's largest and highest-profile asset managers. The investor statement also called attention to BlackRock CEO Larry Fink's pro-Bitcoin comments from July 5, in which he described himself as a high-conviction Bitcoin maximalist.

Statistics Shows That MicroStrategy Bitcoin Holdings Gained Value From The Years Beginning

Along with colleagues Matthew Laflash and Hassan Saleem, equities analyst Mark Palmer authored the research study. According to statistics from TradingView, shares of MicroStrategy are presently selling for $408, having increased by roughly 180% since the start of 2023. In the meantime, the cost of Bitcoin has risen by 84% since the year's beginning.

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