New York investment company Berenberg Capital Markets published research note explaining the reasons behind the upbeat outlook for MicroStrategy (MSTR) stock. The report writes that the Bitcoin halving reinforces the bullish scenario for the company.
The research note states that the company’s core value is more than 150,000 BTC, which is on its balance sheet. In addition, they added that they expect a repeat of the historical upward trend in the value of bitcoin after the halving.
The events associated with the halving reduce the rate of issuance of new coins by 50%, which actually slows down the appearance of new tokens on the market. The fourth Bitcoin halving is expected to take place on April 26, 2024.
“If the historical scenario that developed during the first three Bitcoin halvings is repeated in the fourth, then the rally before will begin in about four months. If a rally takes place after the next halving, and it lasts as long as the previous ones, then the growth will end around October 2025,” writes Berenberg Capital.
Experts also predict that if BTC grows, as it did during the previous three halvings, then MSTR shares will also grow along with it. The company adds that the correlation between the company’s share price and the price of bitcoin is approximately 0.90.
Microstrategy shares have risen more than 181% since the beginning of this year. On Monday, July 10, they were marked by an increase of 7% and closed the trading day at $407.71.
Stay in touch! Subscribe to bitcoinlinux.com at Telegram.
