Microstrategy’s Stock Poised to Benefit from Bitcoin Halving, Berenberg Predicts
Minneapolis-based business intelligence and analytics software company MicroStrategy Inc. is poised to benefit from the upcoming 'halving' event of the leading cryptocurrency Bitcoin, investment bank Berenberg predicted.
The long-awaited ‘halving’, where the Bitcoin mining rewards issued to miners gets cut in half, is expected to take place in mid-May.
Berenberg believes that the recent surge in Bitcoin prices will provide a significant boost to Software & Services Stocks, and especially to MicroStrategy’s stock.
The bank believes that MicroStrategy has been a beneficiary of the increasing institutional demand for Bitcoin, particularly due to its decision to invest $425 million of its treasury funds in the cryptocurrency in December 2020.
The company has also been investing in Bitcoin, with its current total reaching $4.3 billion and giving them a market value of over $10 billion.
Overall, Berenberg believes that with Bitcoin’s halving fast approaching, MicroStrategy’s stock could benefit from the event, and is likely to continue to be an attractive investment opportunity for institutional investors.