TLDR
- XRP lawyer John Deaton forecasts Bitcoin could reach $250K within a year.
- Deaton says MSTR stock may surge past $500 if Bitcoin hits projected levels.
- MSTR stock fell after Saylor reversed stance on equity dilution policy.
- MicroStrategy holds over 214,000 BTC, making it the largest corporate holder.
MicroStrategy (NASDAQ: MSTR) has drawn attention from crypto investors after XRP lawyer John Deaton made a bold prediction. He believes that Bitcoin’s price could climb as high as $250,000 within the next year. If that happens, he expects MSTR stock to surpass $500, despite the company’s recent stock volatility and policy changes from its Chairman, Michael Saylor.
Deaton Predicts Strong Bitcoin Rally and MSTR Stock Surge
John Deaton, a known legal figure in the XRP community, shared his Bitcoin price prediction on social media. He suggested that Bitcoin could reach between $180,000 and $250,000 by the end of 2025. Deaton stated that such a move could drive MicroStrategy’s stock price beyond $500, considering the company’s large Bitcoin holdings.
MSTR is currently trading at $358. It recently faced downward pressure after Michael Saylor reversed his earlier stance on stock dilution under a 2.5x market net asset value (mNAV). Deaton warned that a possible correction of 30% to 40% in Bitcoin’s price could create strong selling pressure on MSTR, sparking rumors of forced selling or liquidation.
I can predict something in the future, related to @MicroStrategy & @saylor, with almost certainty. I believe Bitcoin will increase to $180K-$250K in the next year. That will cause @MicroStrategy stock to 🚀
Today, the stock’s at $358 and will likely exceed $500 a share during… https://t.co/8OQCVX1nY3
— John E Deaton (@JohnEDeaton1) August 24, 2025
Still, Deaton’s forecast aligns with others in crypto space. Figures like Anthony Scaramucci and Eric Trump have also suggested a potential surge in Bitcoin’s value. The expectations are based on the possibility of broader institutional adoption and growing demand in a limited supply environment.
MicroStrategy Stock Faces Pressure After mNAV Policy Shift
MicroStrategy’s stock declined over the past month after Michael Saylor made a major policy shift on stock issuance. The company had previously committed not to dilute shares below a 2.5x mNAV level. However, with the current mNAV falling to 1.6x from 3.68x in December 2024, Saylor’s position changed.
During the Q2 earnings call, CFO Andrew Phang confirmed that the firm will avoid equity dilution at this stage. The company also reported $10 billion in net income for the second quarter. Despite the strong earnings, the reversal on stock issuance created investor concern.
The stock fell to a four-month low near $330 last week before recovering slightly. It closed Friday’s session up 6% to $358. Analysts say the price may drop to $300 before any sustainable upward movement, although some view the recent bounce as a sign of recovery.
Shirish Jajodia, Treasurer at MicroStrategy, commented on the company’s position during an interview on the Coin Stories podcast. He said investors would eventually understand the reasoning behind the shift in stock issuance strategy.
Analysts See Long-Term Potential for MicroStrategy’s Bitcoin Strategy
Despite the short-term weakness, some analysts continue to see potential in MicroStrategy’s Bitcoin-focused strategy. Fundstrat’s Tom Lee recently said that the company could become one of the biggest on Wall Street if Bitcoin hits $1 million. He compared MicroStrategy’s role in Bitcoin to ExxonMobil’s role in oil markets, saying, “Exxon was oil. Strategy is Bitcoin.”
Lee added that the company’s value may not come from earnings but from the value of its Bitcoin assets. The firm has accumulated over 214,000 Bitcoins, making it one of the largest corporate holders in the world. Its strategy is based on the belief that Bitcoin will outperform traditional assets in the long run.
As the market awaits the next major move in Bitcoin’s price, all eyes remain on MicroStrategy. If Bitcoin rises sharply as predicted, Deaton’s $500+ price target for MSTR may be within reach.
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