BTIG raised the firm’s price target on MicroStrategy (MSTR) to $290 from $240 and keeps a Buy rating on the shares. In conjunction with the Q3 report, the company announced a $42B capital raising plan for the next three years, the analyst tells investors in a research note. The firm says MicroStrategy intends to raise $21B via equity offerings and $21B via fixed income instruments for the purpose of acquiring additional bitcoin. BTIG thinks MicroStrategy’s track record of a generating bitcoin yield by accretively raising capital to buy bitcoin, and plans to acquire $42B of additional bitcoin during the next three years are why the stock trades at a premium to the spot value of its bitcoin holdings.
Don't Miss our Black Friday Offers:
- Unlock your investing potential with TipRanks Premium - Now At 40% OFF!
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Read More on MSTR:
- MicroStrategy’s Q3 2024: Strategic Moves Amid Losses
- MicroStrategy aims to raise $42B over next 3 years to buy more bitcoin
- MSTR Earnings: Microstrategy Plunges amid EPS Miss and Plan to Raise $42B
- MicroStrategy reports Q3 EPS ($1.72), consensus (14c)
- Analysts Can’t Keep Pace With MicroStrategy Stock’s Meteoric Surge