- The share price of software company Microstrategy rose 7% after a recent forecast from Berenberg.
- The investment bank believes that next year’s Bitcoin halving could spark a rally in Microstategy’s (MSTR) shares.
- Berenburg’s current MSTR price target is $430, which would be an 18-month high.
Hamburg-based Berenberg Capital Markets recently circulated a research note touting the upcoming Bitcoin halving as a potential trigger event for the share price of US-based software company Microstrategy. Berenberg believes the fourth Bitcoin halving could lead to a significant increase in the share price of Bitcoin maximalist Michael Saylor’s company.
Berenberg shares bullish price target for microstrategy
According to a research note shared with The blockBerenberg Capital Markets placed most of Microstrategy’s value on the massive Bitcoin holding on its balance sheet, which exceeded a whopping $150,000. The investment bank is counting on the previously seen post-halving BTC price rally to trigger a bullish scenario for the share price of Saylor’s company as well.
“If the fourth bitcoin halving marks some sort of strong rally in bitcoin’s price that occurred prior to and after the first three halvings, then we think it is likely that shares of MSTR would rise along with it; the correlation between the company’s share price and the price of bitcoin is ~0.90.”
Berenberg Capital Markets
Berenberg currently has a rather bullish price target for Microstrategy shares, $430 to be exact. The investment bank believes the software company’s share price will hit an 18-month high, returning numbers previously seen in January 2022. At the time of writing, the stock was trading at $407.7, up more than 7% over the past 24 hours.
Previously observed trends suggest that Microstrategy’s stock is reacting to Bitcoin’s price action. A fall in BTC is usually reflected by the stock price of the software company. An investigative report released Monday by Standard Chartered strengthened MSTR’s bull case. The British banking giant raised its BTC price target, stating that the flagship cryptocurrency could reach $130,000 by the end of 2023.