Benchmark's Managing Director and Senior Research Analyst for FinTech and Digital Assets significantly increased MicroStrategy's (MSTR) price target from $990 to $1,875 and reiterated his Buy rating on the stock. The move comes as Bitcoin (BTC-USD) continues to rise as the long-awaited halving event approaches. Mr. Palmer joins Market Domination to discuss his bullish outlook.
Palmer acknowledged a common question: “Why is MicroStrategy trading at such a high premium when investors can buy Bitcoin on their own?” However, he points out that this view “sees things from a static point of view.” Instead, Palmer's strategy focuses on how much Bitcoin MicroStrategy will hold over the next few years, what the price of Bitcoin will be at that point, and “how the company will increase its Bitcoin holdings.” The focus is on assessing whether a higher level of performance can be achieved.
Regarding the outlook for Bitcoin's price, Palmer said he expects the “supply shock” of the Bitcoin halving to reduce the supply of the cryptocurrency, reaching $150,000 by the end of 2025. He also cited a “demand shock” from the approval of the Spot Bitcoin ETF, which has seen more than $34 billion in inflows.
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Editor's note: This article was written by angel smith
