Analysts revise MicroStrategy stock price target
In 2024, MicroStrategy (NASDAQ: MSTR) had an impressive year, emerging as the largest institutional holder of Bitcoin (BTC) with a bold acquisition strategy that saw the value of its stock more than double. By June 14, MSTR stock had surged by 116.58% since the beginning of the year, fueled by its relentless accumulation of Bitcoin.
Continuing its aggressive approach, MicroStrategy announced on June 13 its intention to raise $500 million through a debt offering to acquire more Bitcoin and for other corporate purposes. The offering, consisting of convertible senior notes due in 2032, will be available to qualified institutional buyers, with initial investors having the option to acquire up to $75 million in notes.
With the company currently holding 214,400 Bitcoins, valued at around $14 billion, any additional purchases in the second quarter would mark its 15th consecutive quarter of acquiring the cryptocurrency. Wall Street analysts have been supportive of MicroStrategy’s Bitcoin strategy, seeing a direct correlation between the rise in Bitcoin’s value and the increase in MSTR stock price.
Analysts at Bernstein initiated coverage on MicroStrategy with an “outperform” rating and a price target of $2,890, highlighting the company’s transformation into a major holding company in the cryptocurrency space. They praised founder and chairman Michael Saylor for his leadership in positioning MicroStrategy as a key player in the industry.
Canaccord Genuity reaffirmed its “buy” rating on MicroStrategy stock on May 28, raising its price target to $2,047. They praised the company’s strategic approach to digital assets and its role as a gateway for equity investors to access the cryptocurrency market. Similarly, BTIG raised its price target for MSTR from $780 to $1,800, citing the company’s strong performance and its innovative capital raising strategies.
Overall, analysts are confident in MicroStrategy’s future growth potential, with MSTR stock positioned to benefit from further increases in Bitcoin’s value. Retail investors looking to gain exposure to the cryptocurrency market may find MicroStrategy’s stock to be an excellent investment option.
