MicroStrategy to Hold 4% of Bitcoin Supply by 2033: Bernstein

 
Niharika Deshpande
Written By 
Niharika Deshpande
November 28, 2024

Analyst at Bernstein estimated that MicroStrategy ($MSTR), the largest publicly traded corporate holder of Bitcoin, could control 4% of the total Bitcoin supply by the end of 2033. These strategic purchases are expected to be value at approximately $830 billion if the growth cuvre of Bitcoin (BTC) continues in the same manner.

MicroStrategy, under the leadership of Michael Saylor has been aggressively accumulating Bitcoin since 2020. The company sees BTC as a superior store of value and a hedge against inflation. The company currently holds 158,000 BTC, worth more than $15 billion at today’s price.

With its business strategy, the company is set to further solidify its position as the most dominant player in crypto market.

Long-Term Vision and Market Impact

Bernstein with prediction indicates confidence in MicroStrategy’s strategy and value appreciation of Bitcoin. By 2033, the total Bitcoin suppy will be capped at 21 million coins, with around 19.5 million already mined. Owning 4% of this supply of BTC indicates MicroStrategy’s influence in the ecosystem and its potential impact on market movements.

Strategic Use of Corporate Debt

MicroStrategy has always come up with innovative ways to buy Bitcoins. A few of these strategies include issuing convertible notes and leveraging corporate debt. This approach mirrors strategies used by other institutional players but on a larger scale, indicating strong conviction in Bitcoin’s future.

Challenges and Opportunities with Bitcoin

While the future forecast seems very optimistic, the risks still persists. Bitcoin’s price volatility and regulatory scrutiny could pose challenges but, if the prediction holds true, the holdings could open a new door for corporate crypto investments.

Moreover, small cap companies have already started following the footsteps of MicroStrategy in order to survive and thrive. As more companies adopt this strategy, it could lead to increased institutional adoption and further fixate BTC’s role in corporate finance.

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Niharika Deshpande
Written by Niharika Deshpande

Niharika has over two years of experience as a crypto-journalist and is part of the team at CryptoNewsZ. Although she holds a Master’s in Biochemistry, she has a knack for simplifying complex blockchain concepts. With a keen eye for industry trends, she delivers breaking stories and insightful analyses of the crypto world. Her articles serve as a go-to resource for those navigating crypto gambling, offering clear and well-researched insights. She also covers the latest crypto pre-sales and emerging token launches, helping investors stay informed. ionate about the evolving blockchain space, she continues to explore its impact on various sectors. Beyond journalism, she actively engages with the crypto community, fostering discussions on decentralized innovations.