Bitcoin

Shares of MicroStrategy could see a 30% increase if Bitcoin reaches $150,000 by the end of 2025, according to an Aug. 2 analyst report shared with Cointelegraph. Benchmark fintech analyst Mark Palmer suggests that the stock could climb to $2,150 per share, given that MicroStrategy continues the Bitcoin purchasing spree initiated by founder Michael Saylor in 2020. Currently, the stock trades at approximately $1,450.
“Our valuation assumes that [MicroStrategy] will continue to aggressively accumulate Bitcoin during the next 1.5 years and that Bitcoin’s price will reach $150,000 by the end of 2025,” Palmer told Cointelegraph via email.
On its Aug. 1 earnings call, MicroStrategy reaffirmed its commitment to Bitcoin by introducing a unique performance metric: Bitcoin yield. This metric measures the ratio of BTC holdings to outstanding shares, effectively setting BTC-per-share as a key performance indicator. The goal is to “demonstrate the efficacy of its bitcoin acquisition strategy and its use of intelligent leverage,” Palmer explained.
“While [MicroStrategy’s] approach has had plenty of detractors, […] management has responded to criticism by pointing to the scoreboard: since the company adopted its bitcoin acquisition strategy on August 10, 2020, the company’s stock has appreciated by 1,206%,” the report noted, adding that MicroStrategy has significantly outperformed both Bitcoin and other stocks during this period.
Benchmark’s “buy” rating is “based on a sum-of-the-parts analysis that combines (1) our estimate of the year-end 2025 value of the company’s Bitcoin holdings and (2) our estimate of the year-end 2025 value of its enterprise software business,” Palmer stated.
MicroStrategy’s stock has declined by about 10% since its investor call, following losses of $5.74 per share, attributed to declining revenue in its core enterprise software business. Despite this weak quarter, the company acquired 12,222 BTC for $805 million—approximately $65,800 per coin—financed through “cash flows, as well as proceeds from equity and debt financings,” CEO Phong Q. Le mentioned during the call.
MicroStrategy now holds a substantial stockpile of 226,500 BTC, valued at around $14.7 billion at current prices.

Analyst Shares MicroStrategy Stock Price Prediction If BTC Hits $150,000

Crypto Intelligence

Other articles published on Aug 5, 2024

Bitcoin (BTC) gained support from big corporate holders in July

Kujira’s Recovery Plan: Debt Repayment and Future Changes

Market Stirs as Solana Whale Transfers $120M to Coinbase Prime

What is Duko Memecoin?

Tron Founder Justin Sun Dismisses Liquidation Rumors As Crypto Markets Plunge

BlackRock Issues Urgent Warning Over Rising Crypto Scams Targeting ETF Investors

Join our free newsletter for daily crypto updates!