MSTR stock price has remained in a tight range this month, even as Bitcoin jumped above $110,000. Strategy trades at $391, down by 9% from its highest point in May and 28% below its highest point in 2024.
This article explores the potential Strategy stock target if Bitcoin jumps to $1 million, as the company’s founder, Michael Saylor, predicts.
Michael Saylor Bitcoin Price Prediction
Saylor, the billionaire founder of Strategy, believes that the Bitcoin price will jump to $1 million in the coming years. Such a move would push BTC’s market capitalization to $21 trillion, making it in par with gold.
Saylor’s bullish case is based on demand and supply. He noted that the Bitcoin supply on exchanges has plummeted to the lowest level in years. There are now 1.1 million coins on exchanges, down from 1.5 million in January this year.
He also noted that only 450 coins are coming online from mining, a figure that will drop by half after the next halving event. In contrast, companies and ETFs are buying more Bitcoin than they are. Strategy bought slightly above 1,000 coins last week, and is in the process of raising $84 billion to continue buying.
Therefore, Saylor expects a Bitcoin supply crunch that will push its price much higher in the long term. This view aligns with our recent Bitcoin price prediction, which highlighted the supply crunch and the cup-and-handle pattern on the daily chart.
READ MORE: Bitcoin Price Prediction as Brad Garlinghouse Delivers His 2025 Target
MSTR Stock Price if Bitcoin Hits $1 Million
This section predicts the potential MSTR share price if Bitcoin jumps from $110,000 to $1 million.
There are two main approaches to establishing this target. However, each of the models uses some assumptions on the future premium and outstanding shares.
The first approach is the multiple-based method, which examines the current valuation and its Bitcoin holdings. In this, MSTR now has a market cap of $109 billion and holds 582,000 coins worth $63.8 billion, giving it a multiple of 1.7.
If Bitcoin were to reach $1 million, its holdings would be worth over $582 billion. Applying a 1.7 multiple gives it a market capitalization of $989 billion. Assuming the outstanding shares remain the same at 279 million, it means that the stock would jump from $389 today to $3,546.
This approach is flawed because it has not taken into account the rising outstanding shares and Bitcoin holdings. The other approach is to consider the per-share valuation with a premium. In this, MSTR has outstanding shares of 279 million and holds 582,000 coins, giving it a Bitcoin per share of 0.002086.
The next stage is to find the value of $1 million Bitcoin by multiplying the figure by 1M. This brings the value of the figure to $2,086. If we apply a multiple of 1.7, then the stock price will be $3,056.
The actual MSTR stock price if the Bitcoin price hits $1 million is difficult to determine, as it is unclear how many coins it will be holding by then and the outstanding shares.
Additionally, it is challenging to predict whether the premium will remain stable or decline to par or below. What is clear, however, is that the Strategy stock price will be higher if Bitcoin surges to $1 million.
READ MORE: MSTR Stock Forecast: Will Strategy Shares Hit ATH Like Bitcoin?
