MicroStrategy: The World’s Largest Bitcoin Company?

MicroStrategy, a company that has transformed from a small software provider to the largest bitcoin holding company, is expected to run another 80% from its current price, according to Bernstein. The Wall Street firm initiated research coverage of MicroStrategy with an outperform rating and a $2,890 price target, implying an upside of 80% based on the stock’s current price.

“Since August 2020, MSTR has transformed from a small software company to the largest bitcoin holding company, owning 1.1% of the world’s Bitcoin supply worth ~$14.5Bn,” Bernstein analyst Gautam Chhugani said in a note.

MicroStrategy’s Aggressive Bitcoin Buying Strategy

MicroStrategy, which launched as a provider of enterprise software, began employing an aggressive bitcoin-buying strategy in 2020 and has primarily traded as a proxy for the crypto’s price since then. This February, the company said it would shift its focus and brand to bitcoin development.

“MSTR positions itself as an ‘active-leveraged’ bitcoin strategy vs. passive spot ETFs,” Chhugani said. “Over the last four years, MSTR’s active strategy has delivered a higher bitcoin per equity share. On a dollar basis, MSTR’s Bitcoin NAV per share has grown ~4-fold beating ~2.4x growth in bitcoin spot price.”

Bitcoin’s price has grown significantly over the years.

Bitcoin per share has grown 67%, from 6 BTC per diluted share in the fourth quarter of 2020 to about 10 BTC per MicroStrategy per share today.

Bernstein Raises Bitcoin Target Price to $200,000

As part of the call, Bernstein raised its bitcoin target price to a “cycle-high” of $200,000 in 2025 from a previous objective of $150,000.

MicroStrategy’s focus on bitcoin development has positioned it as a leading bitcoin company.

MicroStrategy’s stock has already seen significant growth, up 138% year to date, more than double bitcoin’s roughly 57% advance in the same period.

MicroStrategy’s stock has seen significant growth this year.

With MicroStrategy’s aggressive bitcoin-buying strategy and its focus on bitcoin development, the company is poised to continue its growth trajectory.