Microstrategy Stock Surges 7% As Berenberg Highlights Bitcoin Halving’s Impact

Samuel Edyme

1 year ago

3 mins read

Microstrategy Stock Surges 7% As Berenberg Highlights Bitcoin Halving's Impact

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Hamburg-based Berenberg Capital Markets recently highlighted the upcoming Bitcoin halving event as a potential trigger for the bullish case of Microstrategy, a United States-based software firm, in a recent research note.

The research note emphasized that Microstrategy, with a bullish price target of $430, primarily derives its value from its substantial holdings of over 150,000 BTC. And Berenberg expects the historical trend of Bitcoin rallying after each halving to repeat.

Halving Events And Bitcoin’s Market Impact

Halving events are significant occurrences in the Bitcoin network that happen approximately every four years. During these events, the rate of new coin issuance is reduced by 50%, resulting in a slower influx of new Bitcoins into the market. The upcoming fourth Bitcoin halving, scheduled for April 26, 2024, is expected to follow this pattern.

Berenberg’s recent research note highlighted the historical trend observed in the previous three halvings and suggested that a pre-halving rally could potentially commence in about four months. If this rally follows a similar trajectory to previous halvings. It could persist until approximately October 2025, according to the research note.

Berenberg noted:

If the historical pattern established by the first three Bitcoin halvings continues to play out with the fourth halving, then the pre-halving rally would begin about four months from now. If a rally were to occur after the fourth halving, and if it were as long-lived as the rallies that occurred after the past couple of halvings, then it would continue until around October 2025.

Correlation Between Bitcoin And Microstrategy’s Stock

According to the research note, there is a strong correlation between Microstrategy’s stock price and the price of Bitcoin, estimated to be around 0.90. If the fourth bitcoin halving triggers a significant rally in the price of the cryptocurrency, it is likely that Microstrategy’s stock will follow suit.

This forecast is due to the positive outlook for Bitcoin’s post-halving performance contributing to the anticipation of a potential rally in Microstrategy’s stock price.

Following the release of Berenberg’s research note, Microstrategy’s stock, with the ticker symbol MSTR, has already witnessed a notable surge of 7% in the past day. The stock, which was trading below its current price range in the previous month, is now valued at $407.

Microstrategy's (MSTR) Stock price chart on TradingView amid Berenberg Bitcoin halving impact forecast — Microstrategy’s (MSTR) Stock price is moving sideways on the 4-hour chart. Source: MSTR on TradingView.com

The market’s positive response reflects the optimism surrounding the potential impact of the upcoming Bitcoin halving event on Microstrategy’s performance. Furthermore, it is worth noting that the concept of halving has since been associated with significant market movements in the past. And investors closely monitor these events for potential opportunities.

The reduction in new coin issuance, combined with market demand, has historically contributed to price appreciation in Bitcoin. As such, the anticipation of the upcoming halving has sparked interest and speculation among market participants.

Berenberg’s analysis adds to the narrative that the halving event could have a bullish impact on the price of Bitcoin. And, consequently, on companies like Microstrategy, which holds a substantial amount of Bitcoin on its balance sheet.

Featured image from Blockchain Reporter, Chart from TradingView

Samuel Edyme

Meet Samuel Edyme, Nickname - HIM-buktu. A web3 content writer, journalist, and aspiring trader, Edyme is as versatile as they come. With a knack for words and a nose for trends, he has penned pieces for numerous industry player, including AMBCrypto, Blockchain.News, and Blockchain Reporter, among others.

Edyme’s foray into the crypto universe is nothing short of cinematic. His journey began not with a triumphant investment, but with a scam. Yes, a Ponzi scheme that used crypto as payment roped him in. Rather than retreating, he emerged wiser and more determined, channeling his experience into over three years of insightful market analysis.

Before becoming the voice of reason in the crypto space, Edyme was the quintessential crypto degen. He aped into anything that promised a quick buck, anything ape-able, learning the ropes the hard way. These hands-on experience through major market events—like the Terra Luna crash, the wave of bankruptcies in crypto firms, the notorious FTX collapse, and even CZ’s arrest—has honed his keen sense of market dynamics.

When he isn’t crafting engaging crypto content, you’ll find Edyme backtesting charts, studying both forex and synthetic indices. His dedication to mastering the art of trading is as relentless as his pursuit of the next big story. Away from his screens, he can be found in the gym, airpods in, working out and listening to his favorite artist, NF. Or maybe he’s catching some Z’s or scrolling through Elon Musk’s very own X platform—(oops, another screen activity, my bad…)

Well, being an introvert, Edyme thrives in the digital realm, preferring online interaction over offline encounters—(don’t judge, that’s just how he is built). His determination is quite unwavering to be honest, and he embodies the philosophy of continuous improvement, or “kaizen,” striving to be 1% better every day. His mantras, “God knows best” and “Everything is still on track,” reflect his resilient outlook and how he lives his life.

In a nutshell, Samuel Edyme was born efficient, driven by ambition, and perhaps a touch fierce. He’s neither artistic nor unrealistic, and certainly not chauvinistic. Think of him as Bruce Willis in a train wreck—unflappable. Edyme is like trading in your car for a jet—bold. He’s the guy who’d ask his boss for a pay cut just to prove a point—(uhhh…). He is like watching your kid take his first steps. Imagine Bill Gates struggling with rent—okay, maybe that’s a stretch, but you get the idea, yeah. Unbelievable? Yes. Inconceivable? Perhaps.

Edyme sees himself as a fairly reasonable guy, albeit a bit stubborn. Normal to you is not to him. He is not the one to take the easy road, and why would he? That’s just not the way he roll. He has these favorite lyrics from NF’s “Clouds” that resonate deeply with him: “What you think's probably unfeasible, I've done already a hundredfold.”

PS—Edyme is HIM. HIM-buktu. Him-mulation. Him-Kardashian. Himon and Pumba. He even had his DNA tested, and guess what? He’s 100% Him-alayan. Screw it, he ate the opp.

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