Benchmark sets $990 target price for MicroStrategy, calling it a strategic move in light of Bitcoin halving.

Investment banker Benchmark has stated that MicroStrategy shares are a favorable investment, with a price target of $990. The firm, known for its Bitcoin-buying software, is expected to benefit greatly from institutional demand and the upcoming Bitcoin halving event in April. MicroStrategy currently holds over $11 billion worth of Bitcoin.
Benchmark senior analyst Mark Palmer believes that MicroStrategy offers investors a timely opportunity to capitalize on the Bitcoin halving. He also predicts that the increased demand for Bitcoin, driven by the introduction of United States spot Bitcoin exchange-traded funds (ETFs), will further boost MicroStrategy’s share price.
The 10 U.S. Bitcoin ETFs, excluding Grayscale’s GBTC, have already seen significant net inflows of $519 million and have generated over $6 billion in net inflows since their launch on January 11.
Palmer also points to the Bitcoin halving as a catalyst for MicroStrategy’s upward price movement. The halving involves reducing rewards for miners by half, thereby decreasing the future supply of new Bitcoin in the market. This event is widely regarded as a positive long-term factor by crypto market experts.
Palmer references the previous Bitcoin halvings in 2012 and 2016, which resulted in significant price increases for the cryptocurrency. He notes that the halving in May 2020 preceded Bitcoin’s remarkable surge from $8,572 to an all-time high of $67,566 in 2021.
MicroStrategy employs a levered operating strategy, using debt financing and share sales to fund its Bitcoin purchases without incurring additional fees. Palmer believes that this approach will benefit the firm as long as the price of Bitcoin continues to rise.
On February 26, MicroStrategy acquired an additional 3,000 BTC, bringing its total holdings to 193,000 BTC, valued at over $11 billion. The company’s share price is currently $871, representing a 9.4% increase for the day.
Meanwhile, Bitcoin is currently valued at $57,083 and has experienced a 9.2% gain over the past week, largely due to strong institutional demand.
MicroStrategy’s share price has grown by 230% in the last 12 months.