- Strategy will be a winner from a crypto stockpile, analysts say.
- Bitcoin is seen to surge to $200,000 thanks to pro-crypto rules.
Strategy will be one of the biggest winners from Donald Trump’s plans to create a national crypto stockpile.
That’s according to Bernstein. On Monday, the research firm told investors that the software company previously known as MicroStrategy will be a “big beneficiary” of any national crypto reserve.
Why? Because Bitcoin will likely make up the bulk of those holdings, which they say will catapult the price as high as $200,000.
“It remains hard to ignore the timeline. We are in a new era,” analysts Gautam Chhugani, Mahika Sapra, and Sanskar Chindalia wrote in a research note. “It still screams bullish to us.”
On Sunday, the president named Bitcoin, Ethereum, Solana, XRP, and Cardano as the five cryptocurrencies he expects to be included in the national crypto reserve. He initially touted the plan as part of a sweeping executive order in January.
The total value of the crypto market jumped 11% overnight to $3.2 trillion on the back of the post. It wasn’t enough to recover the losses in February saw it slump from $3.7 trillion.
“President Trump is keeping his promise to make the US the ‘crypto capital of the world,’” David Sacks, Trump’s freshly appointed crypto czar, tweeted.
‘Bitcoin bank’
Trump didn’t provide any additional details about the makeup of a crypto stockpile.
Bernstein’s analysts speculated that Bitcoin, Ethereum, and Solana will make up the bulk of the investments.
That will, in turn, drive the value of those assets to new records, they argued.
Strategy holds just under 500,000 Bitcoin — as part of its Chair Michael Saylor’s bid to transform the software company into a “Bitcoin bank” — meaning the firm will likely benefit from the reserve, Bernstein said
“This would further open up capital market access for MSTR and hyper-scale its Bitcoin strategy,” Chhugani, Sapra, and Chindalia wrote.
On Sunday, Saylor retweeted Trump’s post and said, “Bitcoin is the foundation of the crypto community.”
To be sure, not everyone was impressed by Trump’s latest missive.
“Nothing new here,” tweeted Arthur Hayes, the crypto influencer and head of investment fund Maelstrom. “Just words.”
Eric Johansson is DL News’ News Editor. Got a tip? Email at eric@dlnews.com.