Skip to main content

Market Overview

MicroStrategy Analyst Projects 64% Upside To Stock Based On Bitcoin Acquisition Strategy

Share:
MicroStrategy Analyst Projects 64% Upside To Stock Based On Bitcoin Acquisition Strategy

Bernstein analysts have set a $290 price target for MicroStrategy‘s (NASDAQ:MSTR) stock, representing a potential 64% surge, based on the company’s aggressive Bitcoin acquisition strategy, according to a new report.

What Happened: MicroStrategy, led by Executive Chairman Michael Saylor, has amassed a substantial Bitcoin (CRYPTO: BTC) holding worth approximately $16 billion, making it one of the top 10 holders of the cryptocurrency.

Bernstein analysts Gautam Chhugani, Mahika Sapra and Sanskar Chindalia praised Saylor’s approach, stating, “Michael Saylor pioneered a Bitcoin treasury model for corporates,” DL News reported on Monday.

The analysts’ optimistic outlook is rooted in the assumption that Bitcoin will reach $1 million by 2033 and that MicroStrategy will continue its cryptocurrency purchases. This bullish sentiment aligns with the broader market’s enthusiasm for Bitcoin, which has seen a nearly 50% increase in value this year.

MicroStrategy’s Bitcoin strategy, initiated in 2020 through a series of convertible note sales, has proven successful thus far. The analysts noted, “Since adoption of its Bitcoin strategy in August 2020, MSTR’s stock is up [around] 13x, outperforming Bitcoin, Gold, S&P, Nasdaq, small cap software.”

Benzinga future of digital assets conference

Also Read: Satoshi Nakamoto Being Pseudonymous ‘Is One Of The Coolest Things Ever,’ Human Rights Activist Said—Could The HBO Documentary Kill The Mystery?

Why It Matters: The strategy is not without risks. Bernstein highlighted a scenario where Bitcoin could reach $200,000 by the end of next year and then stagnate, potentially forcing MicroStrategy to sell its holdings to repay stockholders and risking financial insolvency.

Despite these risks, MicroStrategy’s market capitalization has soared to over $35 billion, placing it on par with many S&P 500 companies. However, the company’s current unprofitability — it reported a net loss of $102 million in the second quarter of 2024 — makes S&P 500 inclusion unlikely in the near term.

Read Next:

Photo: Shutterstock

Latest Ratings for MSTR

DateFirmActionFromTo
Jul 2021BTIGMaintainsBuy
Jul 2021Canaccord GenuityMaintainsBuy
Jun 2021CitigroupMaintainsSell

View More Analyst Ratings for MSTR

View the Latest Analyst Ratings

 

Related Articles (MSTR)

View Comments and Join the Discussion!

Posted-In: AI Generated BernsteinAnalyst Color Cryptocurrency News Price Target Top Stories Analyst Ratings

Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
SPAC
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com