Palmer’s optimism about MSTR is based on the company’s Bitcoin holdings. The analyst expects the flagship cryptocurrency to hit a price of “$150,000 by 2025.” He noted that MicroStrategy’s massive Bitcoin holdings will greatly benefit from the upcoming halving event, as the supply of Bitcoin will be reduced to half. The $150,000 price target for Bitcoin is also higher than Palmer’s Feb. 27 prediction that the price would touch $125,000. Following this analysis, BTC rallied approximately 27%, leading to the analyst’s higher price target.
He went on to add that the upcoming halving could mimic a similar scenario. The impact could also be further intensified by the shock in demand, which analysts expect to be created by the spot Bitcoin ETF products. Several analysts are touting the post-halving scenario as a bullish period for Bitcoin. However, analysts noted that this halving is different from the previous one’s because BTC had already hit an all-time high prior to the event.
Another factor Plamer has considered in his prediction for the MSTR stocks target is the company’s tendency to strategically accumulate Bitcoin. The firm, under the leadership of Michael Saylor, has been accumulating Bitcoin at an average price of $35,160. Palmer expects this trend to continue, highlighting that the company has increased its Bitcoin holdings for 15 consecutive quarters. The analyst expects Saylor’s firm to hold approximately 298,246 Bitcoins by year-end 2025, a 40% increase from current holdings.