MicroStrategy’s Bitcoin Bet: On Track to Own 4% of Supply by 2033 Says Bernstein

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MicroStrategy, known for its massive Bitcoin holdings, is doubling down on Bitcoin, with analysts at Bernstein predicting the company could own 4% of all circulating Bitcoin by 2033. Currently holding 386,700 BTC, the firm is described as a “bitcoin magnet,” attracting billions in capital. Its latest acquisitions added 51,780 BTC at an average price of $88,627.

Bernstein See MSTR to Hit $600

According to Bernstein, Bitcoin’s current favorable market conditions, including rising institutional interest and regulatory support, put MicroStrategy in a strong position to achieve its target sooner than expected. They predict that Bitcoin prices could reach $1 million by 2033, which could make MicroStrategy’s holdings worth a staggering $830 billion, a massive increase from today’s value.

As a result, Bernstein has raised its price target for MicroStrategy’s stock (MSTR) to $600 by late 2025. This is a significant leap from their previous target of $290 set in June, when the stock was trading around $148.

Bernstein’s analysis is based on three key factors: sustained long-term investor interest in Bitcoin, MicroStrategy’s ability to maintain liquidity despite market volatility, and its success in scaling capital.

Mixed Reactions from the Market

Meanwhile, not everyone is optimistic with Bernstein’s analysis. Citron Research recently shorted the company’s stock, saying its value has gone beyond what Bitcoin’s fundamentals support. However, supporters argue that MicroStrategy’s vision and aggressive strategy could pay off in the long run. 

Despite this, analysts believe that Bitcoin bull markets could sustain MicroStrategy’s premium valuation, allowing it to continue raising funds and buying more Bitcoin.

MicroStrategy’s Bitcoin Holdings

MicroStrategy has been growing its Bitcoin holdings, now owning over 386,700 BTC, bought at an average price of $49,874 each. The company uses convertible debt and equity to fund these purchases, attracting Wall Street’s attention.

In November, they raised $3 billion in convertible debt and $6.6 billion in equity, helping them stay on track to reach a $42 billion capital-raising goal in the next three years.

MicroStrategy’s Bold Vision 

MicroStrategy’s bold vision to be a “Bitcoin magnet” is evident in its rapid acquisitions and long-term strategies. The firm’s Chairman, Michael Saylor, envisions a trillion-dollar valuation, positioning the company as a leader in the Bitcoin space. 

If Bitcoin hits $1 million by 2033, MicroStrategy’s Bitcoin could be worth $830 billion, making them a dominant force. Their ultimate goal is to become a trillion-dollar “Bitcoin bank.”