The research firm attributes this optimistic price forecast to increasing demand from spot exchange-traded funds (ETFs) and the limited supply of the cryptocurrency.

Bernstein has revised its 2025 estimate for Bitcoin upward, raising it from $150,000 to $200,000. This projection reflects the growing institutional interest in Bitcoin and its potential for significant price appreciation. The firm also initiated coverage of MicroStrategy (MSTR), the largest corporate holder of Bitcoin, giving the company an outperform rating.

MicroStrategy, based in Tysons Corner, Virginia, has witnessed a remarkable transformation over the past four years, evolving from a small software developer to a major player in the cryptocurrency market. The company now owns about 1.1% of the global supply of Bitcoin, valued at approximately $14.5 billion. Bernstein's research highlights MicroStrategy's shift since it began acquiring Bitcoin as a reserve asset in 2020.

Bernstein's report specifically emphasizes MicroStrategy's founder and chairman, Michael Saylor, who has become synonymous with brand Bitcoin. Saylor's active Bitcoin acquisition strategy has positioned MicroStrategy as a leading Bitcoin company, attracting significant capital for its endeavors.

Setting a price target of $2,890 for MicroStrategy shares, Bernstein notes that the company currently holds 214,400 Bitcoin. This active leveraged Bitcoin strategy has allowed MicroStrategy to achieve higher Bitcoin per equity share when compared to passive spot ETFs over the past four years.

MicroStrategy's long-term convertible debt strategy further strengthens its position. This approach minimizes the risk of having to liquidate its Bitcoin holdings and provides the company with a buffer to benefit from potential price increases in the cryptocurrency. MicroStrategy recently proposed a $500 million debt sale of convertible notes to further expand its Bitcoin holdings.

As the cryptocurrency market continues to evolve, stakeholders are closely watching these developments. Benzinga's Future of Digital Assets event on November 19 will explore insights into market trends and strategies to navigate the ever-changing landscape.

In conclusion, Bernstein's research indicates a positive outlook for the future of Bitcoin, projecting its price to potentially reach $1 million by 2033. MicroStrategy's active Bitcoin acquisition strategy and its long-term financial approach have positioned the company as a major player in the cryptocurrency market.