Shares of software company MicroStrategy (MSTR) climbed to $339.66 on Friday following its recent plunge. The rally came after the company announced that it bought 2,138 Bitcoin at an average price of $97,837 for a total of $209 million. This marks the eighth consecutive week of Bitcoin purchases, which brings its total holdings to 446,400 Bitcoin acquired at an average cost of $62,428 per coin.
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The company’s Bitcoin-heavy strategy has drawn both praise and skepticism. While MicroStrategy has outperformed Bitcoin and Nvidia (NVDA) this year, while also securing a spot on the Nasdaq 100 (NDX), critics argue that the company operates more like a Bitcoin holding firm than a software company, which exposes investors to high risk and volatility. Indeed, some analysts caution that such an aggressive Bitcoin strategy may undermine long-term shareholder stability despite its short-term market gains.
Nevertheless, CEO Michael Saylor, a vocal Bitcoin advocate, continues to champion the cryptocurrency’s potential and insists that it is a transformative asset.
H.C. Wainwright Is Bullish on Crypto
Similar to Michael Saylor, H.C. Wainwright is also bullish on crypto. In fact, the firm expects the crypto mining sector to boom in 2025 and reach a total market cap of $100 billion. It also expects Bitcoin to reach $225,000 by the end of the year. The firm believes mining stocks will outperform Bitcoin itself as market fundamentals and prices improve. Furthermore, it highlighted pure-play miners like Marathon Digital (MARA), Riot Platforms (RIOT), and CleanSpark (CLSK) as top picks.
Is MSTR a Good Stock to Buy?
Overall, analysts have a Strong Buy consensus rating on MSTR stock based on eight Buys assigned in the past three months, as indicated by the graphic below. However, after an 418% surge in its share price over the past year, the average MSTR price target of $529.57 per share implies 55.9% upside potential.
