MicroStrategy Is The ‘Bitcoin Magnet,’ Says Bernstein, But Not Everybody’s Sold: ‘Nothing Is Free In Finance,’ Says One Analyst
MicroStrategy Inc. (NASDAQ:MSTR) has been described as the “Bitcoin magnet,” attracting billions of dollars in global capital through its unprecedented Bitcoin (CRYPTO: BTC) treasury strategy.
What Happened: Bernstein’s report on Monday highlights MicroStrategy’s role in mainstreaming Bitcoin on Wall Street, projecting the company could hold 4% of the global Bitcoin supply by 2033, up from 1.7% today.
However, skeptics, including popular analyst ‘Kryptokrates,’ caution that the strategy comes with significant risks, raising questions about its long-term viability.
Bernstein lauded MicroStrategy’s innovative model, which leverages convertible debt and equity raises to amass Bitcoin.
The firm’s current holdings of ~300,000 BTC are valued at $32 billion, acquired at an average cost of ~$49,900 per Bitcoin.
Bernstein projects MicroStrategy could increase its holdings to 4% of the world’s Bitcoin by 2033, assuming Bitcoin reaches $1 million per coin.
“MicroStrategy’s …
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