Analysts revise MicroStrategy stock price target
In 2024, MicroStrategy (NASDAQ: MSTR) had an impressive year as the leading institutional holder of Bitcoin (BTC) continued its aggressive acquisition strategy of the popular cryptocurrency. The value of Bitcoin rose by 51% in the first six months, causing MSTR stock to more than double in value.
As of June 14, MSTR stock had increased by 116.58% since the beginning of the year, fueled by the company’s ongoing accumulation of Bitcoin holdings. MicroStrategy’s correlation with Bitcoin’s value was evident in the significant rise of its stock price.
MicroStrategy’s commitment to buying Bitcoin remained steadfast, as the company announced on June 13 its plan to raise $500 million in debt for further Bitcoin purchases and other corporate purposes. The debt offering, consisting of convertible senior notes due in 2032, would be available to qualified institutional buyers.
Initial investors would have a 13-day option to acquire up to $75 million in notes, which would bear interest semiannually until maturity. As of April 26, MicroStrategy owned 214,400 Bitcoins, valued at approximately $14 billion at current prices.
Analysts on Wall Street viewed MicroStrategy’s Bitcoin acquisitions favorably, recognizing a direct link between the rise in Bitcoin’s value and MSTR stock price. Bernstein analysts initiated coverage on MicroStrategy with an “outperform” rating and a price target of $2,890, highlighting the company’s transformation into a major holding company.
Canaccord Genuity reaffirmed its “buy” rating on MicroStrategy stock on May 28 and raised its price target to $2,047, praising the company’s strategic approach to digital assets. BTIG also raised its price target for MicroStrategy to $1,800 on April 5, citing positive factors such as the surge in the company’s stock and the increase in Bitcoin’s value.
Overall, analysts were confident in MSTR stock climbing above $2,000 and viewed it as an excellent exposure tool for retail investors looking to benefit from further increases in Bitcoin’s value.