Unsurprisingly, Michael Saylor, cofounder of MicroStrategy (MSTR), remains extremely bullish on Bitcoin. He is so bullish, in fact, that he is predicting that it will hit $13 million per coin by 2045—a massive 12,900% gain from current levels. Speaking to CNBC, Saylor forecasted an annualized return of 29% over the next 21 years, which would be down from its current 60% rate as adoption grows.
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This is because he believes that as more investors join the space, Bitcoin’s volatility will decrease, which would lead to more stable returns that are less prone to the 80% crashes seen in the past.
Saylor also views Donald Trump’s recent election win and Republican control of Congress as a major tailwind for crypto. With the GOP’s pro-crypto stance, he expects to see legislation that is supportive of the industry, along with the possibility of a strategic Bitcoin reserve. Senator Cynthia Lummis even suggested the Federal Reserve sell some gold to buy Bitcoin, which could further increase the industry’s growth.
Michael Saylor Is Not Done Buying
There is no denying that MSTR stock has benefitted greatly from Saylor’s leadership. As a matter of fact, thanks to him, MicroStrategy has gone all-in on Bitcoin and has accumulated over 331,200 coins worth more than $30 billion. However, the company wants to continue raising funds through a mix of convertible bonds and equity in order to keep buying more.
Is MSTR a Good Stock to Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on MSTR stock based on eight Buys assigned in the past three months, as indicated by the graphic below. However, after a 567% surge in its share price on a year-to-date basis, the average MSTR price target of $357.38 per share implies 15.3% downside risk.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
