As the countdown to Bitcoin’s next halving event draws near, investors and market observers eagerly await its potential impact on Bitcoin-focused stocks and the BTC price itself. However, a New York-based investment platform Berenberg Capital Markets has claimed that MicroStrategy will be the biggest beneficiary of the upcoming halving.
A Bullish Halving For MicroStrategy
The Berenberg Capital Markets report provided convincing insights behind its optimistic stance on MicroStrategy as the biggest beneficiary of the next Bitcoin halving event. The investment firm explained that it is expecting the stock price of the crypto-based company to trade at $430 during that event.
Diving into their analysis, the Berenberg analysts emphasize that MicroStrategy’s primary value source is its Bitcoin holdings, which stand at 152,333 BTC as of last month. They added that this strategic purchase of the leading digital asset has positioned MicroStrategy as a prominent player in the cryptocurrency market, positioning the company for future gains from owning the asset.
Analysts predict the April 2024 Bitcoin halving event will cause extraordinary transformation in the crypto industry. This notable event is expected to reduce the BTC issuance rate in half and lead to a fresh bull season for the crypto market.
Should the historical pattern of the previous three Bitcoin halves repeat itself, Berenberg predicts a pre-halving crypto market rally to occur a few weeks before the main halving event.
Previous Halving Price Trend
The Berenberg report also explained the phenomenon of Bitcoin halvings and their profound impact on price dynamics. Throughout history, each Bitcoin halving cycle has caused a significant BTC price spike.
When the inaugural halving occurred on November 28, 2012, Bitcoin’s value was approximately $12. However, BTC’s price spiked to a new high a year later, trading at $1,164.
Intriguingly, the analysts asserted that while Bitcoin’s supply adheres to an immutable and predestined trajectory, the accurate measure of its potential can be determined by analyzing demand and supply. The note added that understanding the demand for this asset is the best determinant of an impending rally for it.
Moreover, the investment manager also referenced the recent positive remarks of BlackRock CEO Larry Fink about Bitcoin. Last week, Fink surprised the crypto community by tweeting about the benefits of crypto, mainly BTC.
The change in his stance on Bitcoin shows that many other players in the traditional finance industry share similar sentiments. Hence, crypto enthusiasts regard Fink as one of the new Bitcoin maximalists.
Earlier, the MicroStrategy CEO, Michael Saylor, was regarded as the leading Bitcoin maximalist due to his consistent prediction of a continued rise in the value of BTC and its use cases. In addition, Saylor never hid the fact that he encouraged his company to accumulate BTC as part of their investment portfolio.
Unsurprisingly, Berenberg has chosen MicroStrategy as the primary beneficiary of the next Bitcoin halving in 2024. MicroStrategy shares currently trade at $408. TradingView data shows that the company’s share value has spiked by nearly 180% since the start of 2023.
Meanwhile, BTC’s price is also displaying a general bullish trend. On-chain data shows that Bitcoin has surged by 84% since the beginning of the year, further solidifying its position as a most sought-after digital asset and a symbol of the expanding decentralized economy.
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