Bernstein, a research firm, has projected that Strategy, formerly known as MicroStrategy, could potentially acquire over 1 million Bitcoin (BTC) by 2033 in a bullish market cycle. This projection is based on two different scenarios depending on macroeconomic conditions and Bitcoin’s long-term price trajectory.
In the optimistic scenario, Strategy would increase its current holdings of 506,137 BTC to 1,013,000 BTC, which is approximately 5.8% of Bitcoin’s current circulating supply. This would be achieved if Bitcoin reaches $200,000 by late 2025, $500,000 by 2029, and $1 million by 2033. To fund this level of accumulation, Strategy would need to rely on continued access to capital markets, potentially increasing its total debt to $100 billion and raising $84 billion in equity. The success of this trajectory would depend on low interest rates and strong investor demand.
On the other hand, the bear case scenario suggests a more constrained future for Strategy. If Bitcoin reaches a peak in 2025 and then enters a prolonged downturn, Strategy’s BTC holdings may stabilize around 514,800 BTC, which is just 2.6% of the total supply. In this case, the company would have to halt further acquisitions and potentially liquidate part of its treasury to manage debt and dividends, with debt rising to $51 billion.
Despite the risks involved, Bernstein maintains an “outperform” rating on Strategy and has set a $600 price target, representing a 75% upside from current levels. The firm’s valuation model applies a 2x EV/sales multiple on the software segment and a 55% premium on its Bitcoin reserves, in line with its average market premium since transitioning to BTC.
Strategy recently made a significant purchase of 6,911 BTC for $584.1 million between March 17 and March 23, further solidifying its commitment to Bitcoin and surpassing the 500,000 BTC mark in total holdings. This has garnered interest from both retail and institutional investors.
Bernstein’s analysis highlights the continued institutional interest in Strategy’s leveraged exposure to Bitcoin, showcasing how corporate balance sheets are being reshaped around the digital asset. This strategic approach sets Strategy apart as a leading example of companies incorporating Bitcoin into their financial strategies.
The original article mentioned XRP Turbo, which indicates the importance of staying updated with the latest developments and trends in the cryptocurrency market. As Strategy continues to navigate its investment in Bitcoin, it will be interesting to see how the company’s holdings evolve in the coming years.