According to Standard Chartered, Bitcoin could reach $500,000 by 2028 as government entities increasingly invest in MicroStrategy (NASDAQ: MSTR), now rebranded as Strategy, as an indirect way to gain exposure to the cryptocurrency. The bank’s head of digital assets, Geoff Kendrick, cited recent SEC 13F filings showing a surge in MicroStrategy holdings among sovereign wealth funds and government entities, signaling growing institutional confidence in Bitcoin’s long-term value.
In Q1 2025, government entities, including first-time buyers like Saudi Arabia and France, increased their stakes in MicroStrategy, a company known for its massive Bitcoin treasury, now holding 576,230 BTC valued at approximately $59 billion. Kendrick noted that these investments reflect a strategic move by entities restricted by local regulations from directly holding Bitcoin, using MicroStrategy as a proxy instead. “The rise in MSTR holdings by government entities is very encouraging and supports our $500,000 Bitcoin price target by the end of 2028,” Kendrick said.
Meanwhile, direct Bitcoin ETF ownership saw a slight decline, with the State of Wisconsin Investment Board exiting its 3,400 BTC-equivalent position in BlackRock’s IBIT ETF. However, U.S. spot Bitcoin ETFs recorded $667.44 million in net inflows on May 19, marking four consecutive days of positive momentum, which underscores broader institutional interest. Sovereign wealth funds in Norway, Switzerland, and South Korea also boosted their MicroStrategy positions, further fueling optimism.
MicroStrategy, led by Chairman Michael Saylor, has continued its aggressive Bitcoin acquisition strategy, recently purchasing 7,390 BTC for $764.9 million at an average price of $103,498 per Bitcoin. The company’s stock has surged over 220% in the past year, outpacing Bitcoin’s 70% gain, though critics like investor Jim Chanos warn of risks due to the company’s leveraged approach.
Standard Chartered’s bullish outlook hinges on factors like declining Bitcoin volatility and portfolio rebalancing by institutional investors. Kendrick previously adjusted his Q2 2025 Bitcoin price target from $120,000, suggesting it “may be too low” due to strong institutional inflows and whale accumulation.
Despite near-term market headwinds, such as tariff-related volatility impacting broader markets, Bitcoin’s resilience and growing adoption by government entities signal a transformative shift in its perception as a strategic asset. Standard Chartered’s forecast aligns with increasing chatter on X, where posts highlight SEC data backing the $500K target, reflecting strong market sentiment.
