Berenberg connects halving Bitcoin and Microstrategy shares

The broker Berenberg anticipates a outbreak from course of theMicrostrategy sharepulled by the Bitcoin investment strategy from the editor and his strong exhibition at crypto-active.

Michael Saylor set the course when he first bought bitcoins in 2020: this is a long-term investment. And with over 152,000 bitcoins in his possession at the end of the 2nd quarter of 2023, MicroStrategy is very heavily exposed to the first of the cryptocurrencies.

As a result, the publisher’s share price is closely correlated to that of the BTC. For the German broker Berenberg Capital MarketsThis correlation represents an opportunity during the token’s growth phase.

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Pre- and post-halving increases for MicroStrategy

In a report, the TradFi-based company forecasts a further surge from MicroStrategy course. The trigger: the future halving of Bitcoin, scheduled for April 2024. This major event in the crypto ecosystem could boost the share’s value to 430 dollars.

However, the rise in the price of players exposed to Bitcoinlike that of the business intelligence software publisher, should start upstream of halving.

If the historical pattern established by the first three bitcoin halvings continues with the fourth halving, then the pre-halving rally will begin in around four months’ time,” predicts Berenberg Capital Markets.

The US publisher’s shares could also continue to grow in a post-halving phase.

If a rally were to occur after the fourth halving, and if it were to last as long as the rallies that occurred after the last two halvings, it would continue until around October 2025.”

A stock that’s already soaring by 180% in 2023

The correlation between MicroStrategy’s shares and Bitcoin is well established. As a result, the stock is recording strong inflation this year, in the wake of the crypto-asset – boosted lately by BlackRock projects and spot ETFs.

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Since the start of 2023, Microstrategy has recorded an increase of over 180%. At the close of trading on July 10, it was quoted at around $407.

After its latest purchase of 12,333 bitcoins, the amount of BTC holdings was close to $4.5 billion. This exceeded its own market capitalization of $4.2 billion.

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