Shares of MicroStrategy (MSTR) were a standout investment in 2024, surging over 350%. The momentum has continued into 2025, with MSTR stock up nearly 37% year-to-date. The stock is riding high on a wave of crypto optimism fueled by U.S. President Donald Trump’s return to power. MicroStrategy, led by Bitcoin advocate Michael Saylor, started as a company that creates software tools for businesses. However, investors mostly know the company for its big decision to buy a large amount of Bitcoin as part of its strategy.
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Looking ahead, analysts remain highly bullish on MicroStrategy’s stock, expecting a boost from President Donald Trump’s pro-crypto stance.
MicroStrategy Soars with Bitcoin Boost
MicroStrategy’s stock rally to a market capitalization of $98 billion was driven by its Bitcoin holdings, rather than its core AI (artificial intelligence) and software business. The company had made significant investments in the cryptocurrency, surpassing 450,000 Bitcoin. Notably, MicroStrategy is the world’s largest corporate holder of Bitcoin, with its holdings currently valued at $45 billion.
Last week, MicroStrategy revealed plans to raise $2 billion through perpetual preferred stock. The company is highly likely to use the funds to acquire more Bitcoin.
Analysts Remain Bullish on MSTR Stock
Turning to Wall Street, MSTR stock has garnered strong bullish sentiment from analysts, who believe MicroStrategy is well-positioned to benefit from Bitcoin’s growth. Interestingly, Bitcoin soared to a new all-time high, surpassing $109,000 on Monday, January 20th, fueled by optimism that the incoming president will support the industry.
Last week, Mark Palmer from Benchmark reiterated his Buy rating to MSTR stock, predicting over 60% upside. Palmer is optimistic over the expected value of the company’s Bitcoin holdings by 2026 along with its software business.
Meanwhile, Brett Knoblauch at Cantor Fitzgerald has raised his price target for MicroStrategy from $518 to $613, indicating a 70% potential upside from current levels. Knoblauch highlighted the company’s capital market strategy that enables it to increase its Bitcoin holdings on a per-share basis.
Insights from TipRanks’ Bulls Say, Bears Say
TipRanks’ Bulls Say, Bears Say tool offers a summary of analyst viewpoints on MSTR stock, highlighting both the positive and negative outlooks. While Bitcoin investment is a key driver of bullish sentiment for the stock, bears remain cautious, citing the potential risks if Bitcoin’s value plummets.
Is MSTR Stock a Good Buy?
According to TipRanks consensus, MSTR stock has a Strong Buy rating based on all Buy recommendations from eight analysts. The average MSTR price target of $529.57 implies a 33.56% upside from current levels.
