MicroStrategy price target raised to $312 from $200 at Cantor Fitzgerald

Cantor Fitzgerald raised the firm’s price target on MicroStrategy (MSTR) to $312 from $200 and keeps an Overweight rating on the shares. MicroStrategy, whose core business is being a business intelligence and analytics software provider, reported Q3 results last night, but its valuation is “entirely driven by its Bitcoin strategy,” the analyst tells investors. The “biggest news” was its newly-announced “21/21 strategy,” whereby the company is planning on raising $21B of equity and $21B of debt to fund Bitcoin purchases over the next three years and has raised its expectations to grow the amount of Bitcoin per share it holds to 6%-10% per year versus previously expecting 4%-8%. At current levels, about $11.8B of new Bitcoin is created each year from mining and MicroStrategy’s new strategy would “effectively eat all new Bitcoin supply, creating further scarcity,” which the firm sees as “extremely positive for Bitcoin” and “bullish for the premium that MSTR trades on over its Bitcoin position.”