Home / News / Crypto / Bitcoin / Is MicroStrategy a Good Bet Ahead of Bitcoin Halving? Michael Saylor’s Gamble Ready to Pay Off
Bitcoin
6 min read

Is MicroStrategy a Good Bet Ahead of Bitcoin Halving? Michael Saylor’s Gamble Ready to Pay Off

Last Updated July 11, 2023 9:16 AM
Teuta Franjkovic
Last Updated July 11, 2023 9:16 AM
Key Takeaways
  • According to analysts, the next pre-halving surge for Bitcoin might start within the next four months
  • Nearly all of the largest Bitcoin investors saw an increase in their share values of more than 80% in just 30 days
  • It is anticipated that the price of Bitcoin will continue to rise both before and after each Bitcoin halving, as it has in the past

The imminent Bitcoin halving is expected to provide equities with a focus on Bitcoin’s new momentum, including Michael Saylor’s tech company MicroStrategy.

Berenberg Puts Bullish Price Target For 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 outlook in its research report.

The analysts assert that MicroStrategy derives most 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 could result in a big price increase for its shares.

“[It] is our expectation that the price of Bitcoin will repeat its historical pattern of rallying both ahead of and following each Bitcoin halving.”

“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,” the report says

The 50% reduction in BTC issuance rate due to the April 26, 2024, Bitcoin halving would drastically slow the rate at which new Bitcoin enters the cryptocurrency market.

As Berenberg points out, the price of Bitcoin has increased by at least 682% over previous rounds of halving. The price of Bitcoin circled at $12 on November 28, 2012, when the first halving occurred.

Its price reached its peak at $1,164 367 days later.

While Bitcoin’s supply follows a “predetermined path,” the researchers pointed out that the entire demand for Bitcoin needed to be assessed before anybody could estimate the “potential magnitude” of a future rise.

As evidence that institutional adoption 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.

According to TradingView statistics, MicroStrategy shares are currently trading for $407.17, 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.

Microstrategy – the Biggest BTC Holder

A few weeks ago, Bitcoin’s dominance was set to reach 80% in the long term as regulators crack down on other assets; MicroStrategy co-founder Michael Saylor then confirmed  that MicroStrategy is the largest public holder of BTC.

Saylor explained that since 2020, Bitcoin has been the sole institutional-grade investable asset in the cryptocurrency ecosystem, according to MicroStrategy’s view. According to him, Bitcoin is a digital commodity that is accepted universally and internationally.

Saylor thinks that stablecoins, crypto securities, and crypto derivatives do not have a “legitimate path forward” in the eyes of authorities. In its actions against Binance and Coinbase, the U.S. Securities and Exchange Commission (SEC) declared 19 cryptocurrency assets as securities last month.

Companies Who Are the Biggest Bitcoin Holders

MicroStrategy, Inc.

The company’s investment had an entry value of $3.975 billion. The company holds approximately 152,333 BTC .  Saylor is optimistic about Bitcoin’s long-term potential and sure that the investment would be profitable.

Marathon Digital Holdings

Marathon is a cryptocurrency mining corporation with a market cap of $225 million as of today and 12,538 Bitcoins  with an entry value of $150 million. The shares jumped 81.35% in the last month.

Coinbase Global Inc.

Coinbase, one of the biggest cryptocurrency exchanges in the world, is no stranger to the Bitcoin community. With an entrance value of $173.7 million and a current worth of $201.6 million, the corporation currently has approximately 9,000 BTC. In the last month, the shares of the crypto exchange jumped over 60%.

Square Inc.

With an entrance value of $220 million and a current worth of $179.8 million, the financial services and mobile payment company currently possesses 8,027 BTC . Similar to Coinbase, Square has made a modest investment in Bitcoin compared to other companies on this list, but it is obvious that Square believes the cryptocurrency market has potential. The jump within the last 30 days was around 7%.

Hut 8 Mining Corp.

Another cryptocurrency mining business that has diversified its holdings by purchasing Bitcoin is Hut 8. Approximately 9,136 BTC  is held by the corporation. The shares of this company skyrocketed within the last 30 days by more than 95%.

Blockchain Hive

A cryptocurrency mining business called Hive Blockchain has operations in Sweden and Canada. With a current worth of $69.2 million, the corporation now possesses approximately 3,091 Bitcoin. Blockchain Hive shares jumped  almost 90% in the last month.

NEXON Co., Ltd.

Japanese video game developer NEXON has been in business since 1994. At the time of writing, the corporation has 1,717 BTC, valued at $38,458,825 on the market. Bitcoin is one of the non-gaming sectors that NEXON has invested in as part of its diversification strategy. With a market valuation of more than $20 billion, the corporation is in a good financial position.

Voyager Digital LTD.

A Canadian cryptocurrency dealer named Voyager filed for Chapter 11 bankruptcy. The corporation has 1,239 BTC as of March 2023, valued at $27,752,175 at today’s market rates.

Binance

Data tracked by blockchain analytics firm Glassnode shows the balance held in Binance’s wallets has increased by more than 52,000 BTC ($1.5 billion) in four weeks, taking the tally to 692,880 BTC. The global tally (coins held on all centralized exchanges) has increased by more than 27,000 BTC.

Despite concerns voiced by the U.S. Securities and Exchange Commission (SEC), CEO Changpeng Zhao has confirmed the company’s support for Voyager’s acquisition by Binance US.

Conclusion

Public firms are becoming more aware of the benefits of Bitcoin investments and holding, and astute investors can participate without abandoning the stock market. Investing in any of the aforementioned businesses will give you indirect access to the cryptocurrency market.

These top 10 players have proven they are willing to investigate investment opportunities and take calculated risks in the ever changing bitcoin market. What remains to be seen is how these businesses will modify and develop their investing strategies once Bitcoin firmly establishes its status as a mature asset.

Was this Article helpful? Yes No