MicroStrategy (NASDAQ:MSTR) stock will be a focal point for Wall Street when it reports Q4 results today after the close. Investors will closely watch CEO Michael Saylor’s unwavering mission – amassing as much Bitcoin as possible.
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Barclays analyst Ramsey El-Assal anticipates that investors will be keen to know about any further acquisitions beyond MSTR’s intra-quarter announcements, as well as updates on the company’s ’21/21′ strategic initiative. Recall that MSTR announced eight separate capital raises during Q4, including seven updates on ATM transactions and one convertible note offering. In total, the company secured approximately $12.6 billion through ATM offerings and around $3 billion from a zero-coupon convertible note maturing in FY29. Using these funds, MSTR acquired ~195,300 Bitcoin during the quarter, ending 2024 with total BTC holdings of 446,400.
Given the “rapid pace” of capital markets activity, El-Assal anticipates that MSTR will update its ’21/21′ strategic plan, especially since management had previously aimed to raise only around $10 billion in FY25.
“We believe investors will react favorably to any further BTC purchases, as well as increased expectations on future capital markets activity,” the analyst went on to add. “Separately, we expect more clarity around MSTR’s preferred stock and how this new type of offering fits into the company’s broader strategy.”
It’s clear investors have liked the company’s BTC-purchasing activities, with the stock gaining a huge 590% over the past year.
For his part, El-Assal thinks there’s more room to run. The analyst rates MSTR shares an Overweight (i.e., Buy), along with a $515 price target, suggesting the stock will gain 50% in the months ahead. (To watch El-Assal’s track record, click here)
There’s complete agreement with that stance amongst El-Assal’s colleagues. Based on 9 unanimous Buys, the analyst consensus rates MSTR a Strong Buy. At $557.50, the average price target makes room for 12-month returns of ~63%. (See MSTR stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
