MicroStrategy (MSTR), a business intelligence firm led by Bitcoin (BTC-USD) enthusiast Michael Saylor, has managed to pull off a financial feat that few saw coming. Since adopting Bitcoin as a reserve asset in August 2020, the company’s stock has exploded by over 1,000%, outperforming all S&P 500 (SPX) companies. According to River Financial, MicroStrategy now holds a staggering 252,220 BTC, valued at approximately $16 billion.
Bitcoin Boosts Microstrategy’s Market Cap
Before diving headfirst into Bitcoin, MicroStrategy’s market capitalization was a modest $1.4 billion. Fast forward to today, and the company’s market cap has ballooned to an incredible $30 billion, an increase of over 2,000%. This dramatic rise, according to Saylor, challenges conventional financial thinking. He believes that “Bitcoin is the one major asset that is accretive,” explaining that as the company raises more funds, it boosts shareholder value rather than diluting it.
Barclays and TD Cowen Raise Price Targets
Barclays has also taken notice, raising its price target for MicroStrategy to $173 from $146, citing the company’s ability to unencumber 70,000 bitcoins. This frees MicroStrategy to be even more aggressive in its Bitcoin accumulation strategy. The firm believes the company is in a “comfortable position” to increase its BTC holdings.
Meanwhile, TD Cowen analyst Lance Vitanza has maintained a Buy rating on MicroStrategy, setting a higher price target of $200.00. Vitanza, a 5-star analyst, boasts an average return of 21.9% and a 55.7% success rate. He covers various stocks in the NA sector, including Clear Channel Outdoor and TKO Group Holdings. MicroStrategy’s shares last closed at $144.78.
With a recent $1 billion senior notes offering, MicroStrategy continues its Bitcoin buying spree. As of mid-September, the company purchased 7,420 more bitcoins for $458.2 million, further cementing its reputation as a crypto trailblazer. According to The Financial Times, MicroStrategy shows no signs of slowing down.
Is MicroStrategy a Good Stock to Buy?
Analysts remain bullish about MSTR stock, with a Strong Buy consensus rating based on 27 Buys and nine Holds. Over the past year, MSTR has surged by a whopping 358%, and the average MSTR price target of $189.71 implies an upside potential of 25.5% from current levels.
