Benchmark sets $990 target price for MicroStrategy, calling it a strategic move ahead of Bitcoin halving.

Investment banker Benchmark believes that MicroStrategy shares are a great investment opportunity, with a price target of $990. The software company, known for its Bitcoin holdings, is expected to benefit from institutional demand and the upcoming Bitcoin halving event in April. MicroStrategy currently holds over $11 billion worth of Bitcoin.
Benchmark senior analyst Mark Palmer stated in a research report that MicroStrategy offers investors a timely opportunity due to the upcoming Bitcoin halving. The increased demand for Bitcoin, driven by the launch of new US spot Bitcoin exchange-traded funds (ETFs), is expected to further boost the company’s share price. These ETFs have already generated over $6 billion in net inflows since their launch on January 11, excluding Grayscale’s GBTC.
Palmer also highlighted the potential impact of the Bitcoin halving on MicroStrategy’s share price. The halving refers to the reduction in rewards for miners and is seen as a long-term catalyst for the crypto market. Previous halving events in 2012 and 2016 led to significant price increases for Bitcoin. Palmer pointed out that the halving in May 2020 preceded Bitcoin’s surge to an all-time high of $67,566 in 2021.
MicroStrategy adopts a levered operating strategy to increase its exposure to Bitcoin. This strategy involves using debt financing and share sales to acquire Bitcoin without incurring additional fees. Palmer believes that this approach will benefit the company as long as the price of Bitcoin continues to rise. MicroStrategy recently purchased an additional 3,000 BTC, bringing its total holdings to 193,000 BTC, valued at over $11 billion.
MicroStrategy’s share price currently sits at $871, experiencing a 9.4% increase for the day. Over the past 12 months, the company’s share price has grown by 230%. Bitcoin, on the other hand, is currently valued at $57,083 and has seen a 9.2% increase in the past week, largely due to strong institutional demand.
Overall, MicroStrategy’s future looks promising as it capitalizes on the growing interest in Bitcoin and the potential benefits of the upcoming halving event.