Benchmark, an investment banking firm, said it has begun covering MicroStrategy Inc (NASDAQ:MSTR) as per a Tuesday research report.

What Happened: The research revealed that Benchmark had set a ‘buy’ recommendation for MicroStrategy’s shares, assigning a price target of $990. 

Benchmark Senior Equity Research Analyst Mark Palmer pointed out potential catalysts to amplify Bitcoin’s (CRYPTO: BTC) value in the coming years. “We believe the boost in demand for bitcoin resulting from the launch of multiple spot bitcoin ETFs, combined with the reduced pace of supply resulting from the halving, has the potential to drive the price of the cryptocurrency meaningfully higher during the next couple of years,” he stated.

Bitcoin halving, an event that slashes miners’ reward by half, thus limiting the new currency supply, is predicted to contribute to this uptrend. 

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Why It Matters: Benchmark’s valuation of MicroStrategy incorporates the expectation that Bitcoin could ascend to $125,000. 

“Our price target for MicroStrategy is based on our assumption that the price of bitcoin will reach $125,000 at the end of 2025, and that move would be driven by increased demand resulting from the SEC’s approval in January of spot bitcoin ETFs in the U.S., and the impact of the fourth bitcoin halving, set to occur in late April,” Palmer said in the report.

MicroStrategy, the business intelligence firm, last week disclosed the acquisition of an additional 3,000 Bitcoins at an expense of $155 million. This addition has brought the company’s total bitcoin holdings to 193,000 BTC, according to its latest SEC filing, making it the largest corporate holder of the cryptocurrency.

Price Action: At the time of writing, Bitcoin was trading at $56,901, up 0.93% in the last 24 hours, according to Benzinga Pro.

Photo via Wikimedia Commons

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