MicroStrategy Inc. (MSTR) shares are trading higher on Thursday, fueled by the surge of Bitcoin (BTC/USD) above the $65,000 level. This bullish momentum for Bitcoin follows last week’s 50-basis point rate cut, a move that has boosted investor confidence in the cryptocurrency. Analysts at Bernstein also point to record-high gold prices as a factor, highlighting Bitcoin’s position as an alternative asset.
“Any signal of loose monetary policy and potentially weaker dollar, is positive for Bitcoin,” noted Bernstein. Adding to the bullish sentiment, a report by financial services firm NYDIG highlights Bitcoin’s role as a hedge against geopolitical uncertainty. Investors are likely considering the upcoming Presidential election and rising tensions in the Middle East.
MicroStrategy’s recent actions further amplify investor optimism. On Monday, the company announced the completion of its latest $1.01 billion offering of senior convertible notes due 2028. Subsequently, MicroStrategy disclosed to the SEC that it had acquired approximately 7,420 bitcoins between September 13th and 19th, using proceeds from the offering. As of September 19th, 2024, MicroStrategy holds a staggering total of roughly 252,220 bitcoins, acquired at an aggregate purchase price of approximately $9.9 billion.
Following the completion of the offering, Barclays analyst Ramsey El-Assal maintained an Overweight rating on MicroStrategy and raised the price target from $146 to $173. TD Cowen also joined in the bullish sentiment, maintaining its Buy rating and raising its price target on MicroStrategy stock from $195 to $200.
Looking ahead, investors are eager to understand the future trajectory of MicroStrategy stock. While past performance is not a guarantee of future results, investors should consider factors like the future earnings expectations, expected performance against a benchmark, and historical performance when evaluating the company’s potential. MicroStrategy’s revenue has grown at an average rate of 0.36% annually over the past 5 years. The average 1-year price target from analysts is $709.43, representing an expected 333.38% upside in 2025. MicroStrategy shares have seen an annualized return of 36.7%, outperforming the S&P500 index by 27.9%. This compares to 22.78% growth in the overall Information Technology sector. MicroStrategy has a beta of 0.65.
According to Benzinga Pro, MicroStrategy shares are up 8.66% at $165.11 at the time of publication on Thursday.
It’s important to remember that this information should not be considered investment advice. Always conduct thorough research and consult with a financial advisor before making any investment decisions.
