MicroStrategy Holding Bitcoins Could Boost Company’s Fortunes

MicroStrategy, a company led by Michael Saylor, could see substantial gains from Bitcoin’s next halving event, according to a report by Berenberg.

MicroStrategy Holding Bitcoins Could Boost Company’s Fortunes

The investment bank’s bullish outlook on MicroStrategy is based on the expectation that Bitcoin will repeat its previous pattern of gains before and after the next halving event.

Bitcoin Halving Event Could Spell Success for MicroStrategy

The report notes that the price of the cryptocurrency began to rally about six months prior to each halving event, with those rallies accelerating significantly during the year or more that followed each one. The next Bitcoin halving, when rewards for mining will be cut by 50%, is expected in the second quarter of next year.

Berenberg Sets Buy Rating on MicroStrategy Shares

Berenberg has a buy rating on MicroStrategy shares with a price target of $430. If the pattern established by the first three halving events is repeated, then the “pre-halving rally” should begin in around four months from now. If a rally happens after the fourth halving, then it could continue until around October 2025.

MicroStrategy’s Stake in Bitcoin Could Lead to Significant Gains

The report suggests that if the fourth halving event repeats the bullish pattern for Bitcoin, then it is likely that MicroStrategy shares will also gain. This is because MicroStrategy’s ability to refinance its debt maturities would be greatly enhanced if its share price, and the value of its Bitcoin holdings, were to increase meaningfully