Fun

MicroStrategy stock set to gain 30% if BTC hits $150K in 2025 — Analyst

News Feed - 2024-08-03 06:08:42

Alex O’Donnell2 hours agoMicroStrategy stock set to gain 30% if BTC hits $150K in 2025 — AnalystThe valuation assumes continued aggressive Bitcoin buying by MicroStrategy.1057 Total views6 Total sharesListen to article 0:00NewsOwn this piece of crypto historyCollect this article as NFTCOINTELEGRAPH IN YOUR SOCIAL FEEDFollow ourSubscribe onShares of MicroStrategy are set for 30% gains if Bitcoin (BTC) climbs to $150,000 by the end of 2025, according to an Aug. 2 analyst report shared with Cointelegraph.


The stock could reach $2,150 per share if MicroStrategy sustains the BTC buying spree started by founder Michael Saylor in 2020, according to Benchmark fintech analyst Mark Palmer. It currently trades at around $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 in an email.


Related:MicroStrategy’s Q2 earnings reveals Bitcoin stockpile now $14.7B


On its Aug. 1 earnings call, MicroStrategy doubled down on BTC buying by committing to a unique performance metric: Bitcoin yield.Revenues from MicroStrategy’s core business are down 7% year-over-year. Source: MicroStrategy


Bitcoin yield measures the ratio of BTC holdings to outstanding shares and effectively sets BTC-per-share as a lodestar for corporate performance. The idea is to "demonstrate the efficacy of its bitcoin acquisition strategy and its use of intelligent leverage,” Palmer said.


“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 said, adding that MicroStrategy greatly outperformed both BTC and stocks during that time frame.


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 said.


MicroStrategy traded down some 10% since its investor call after posting losses of $5.74 per share, driven by declining revenue in its core enterprise software business. 


Despite the weak quarter, MicroStrategy still scooped up 12,222 BTC for $805 million — or around $65,800 per coin — financed from “cash flows, as well as proceeds from equity and debt financings,” CEO Phong Q. Le said on the call.


It now owns a stockpile of 226,500 BTC, worth around $14.7 billion at current prices.


Magazine:THORChain founder and his plan to ‘vampire attack’ all of DeFi# Bitcoin# Cryptocurrencies# Business# Bitcoin Price# Markets# Stocks# Price Analysis# Market Analysis# MicroStrategyAdd reaction

News Feed

Market Update: Bitcoin World Reserve Theories, Market Cap Loses $16B, Analyst Predicts $7,500 ETH
Market Update: Bitcoin World Reserve Theories, Market Cap Loses $16B, Analyst Predicts $7,500 ETHDigital currency markets are down on Sunday evening roughly 2.14% as global trade vo
Analyst Jim Cramer Calls Ethereum the ‘Pied Piper of Crypto’ but Won’t Add to His Position
Analyst Jim Cramer Calls Ethereum the "Pied Piper of Crypto" but Won"t Add to His Position CNBC’s stock analyst and crypto investor Jim Cramer says he&rsqu
Bank of Russia Backs Crypto Mining Bill But Insists Minted Coins Should Be Exported
Bank of Russia Backs Crypto Mining Bill But Insists Minted Coins Should Be Exported The monetary authority in Moscow has expressed support for the latest legislative attempt to leg
Brayden Lindrea48 minutes agoFrom walls to wallets: Barcelona graffiti artists share their love for BitcoinNine months after launching, the Street Cy₿er artist collective has over 100 street artists, musicians and Bitc
10-Year-Old Block Rewards Wake Up: Data Parsers Catch a String of 1,000 ‘Satoshi Era’ Bitcoins from 2010 Spent Today
10-Year-Old Block Rewards Wake Up: Data Parsers Catch a String of 1,000 "Satoshi Era" Bitcoins from 2010 Spent Today On December 27, at around 2 a.m. in the morn
Top FTX claim holder Attestor sues seller amid Bitcoin rally
Helen Partz14 hours agoTop FTX claim holder Attestor sues seller amid Bitcoin rallyLondon-based Attestor has filed a lawsuit against FTX claims seller Lemma after making a 200% profit on the purchased FTX claims stash.12
Bitcoin Core dev receives grant for maintaining BIP repository
Ezra Reguerra11 hours agoBitcoin Core dev receives grant for maintaining BIP repositoryDeveloper Jon Atack believes that Bitcoin plays a role in human freedom, decentralization of power, privacy and self-sovereignty. 17
0 Security Breach. 0 Token Loss.
0 Security Breach. 0 Token Loss.BigONE is a global cryptocurrency trading and custody platform founded in 2017, clad in four principles – Integrity, Security, Professionalism,
Taylor Swift Rejected Crypto Exchange FTX’s Sponsorship Offer Over Unregistered Securities Concerns
Taylor Swift Rejected Crypto Exchange FTX"s Sponsorship Offer Over Unregistered Securities Concerns Taylor Swift, a pop icon and 12-time Grammy Award winner, reportedly turned down
0.2 Zettahash: Bitcoin’s Hashrate Taps New Lifetime High, Mining Difficulty Nears ATH
0.2 Zettahash: Bitcoin"s Hashrate Taps New Lifetime High, Mining Difficulty Nears ATH Bitcoin’s hashrate tapped a lifetime high on the first day of 2022 reaching 209.39 exah
Indonesia to implement regulatory sandbox for crypto assets
Savannah Fortis13 hours agoIndonesia to implement regulatory sandbox for crypto assetsThe Indonesian financial authorities said that by the beginning of 2025, the government will implement a regulatory sandbox for crypto
12 Crypto Firms Authorized to Operate License-Free in Hawaii for Two Years
12 Crypto Firms Authorized to Operate License-Free in Hawaii for Two YearsThe U.S. state of Hawaii has authorized 12 cryptocurrency companies to start operating in the state without