Bernstein has significantly boosted its price target for MicroStrategy (MSTR), raising it to $600, up from $290, while reiterating its “outperform” rating. The firm’s research underscores MicroStrategy’s unique Bitcoin (BTC) treasury model, which positions the company to attract massive investments in Bitcoin over the long term. Bernstein predicts that MicroStrategy could control 4% of the global Bitcoin supply by 2033, increasing its current holdings of 1.7%. This bullish outlook comes as the company plans to purchase an additional $42 billion in Bitcoin over the next three years, capitalizing on the favorable market conditions and regulatory support for cryptocurrencies.
Similarly, Canaccord Genuity has raised its price target for MicroStrategy’s stock to $510 from $300, citing its strong Bitcoin acquisition strategy. The brokerage also noted that traditional earnings metrics are becoming less relevant for valuing the company, given that its software business now represents a minor portion of its enterprise value. Instead, analysts suggest that the true value lies in the company’s expanding Bitcoin portfolio, with a focus on “dollarized Bitcoin accretion per share.”
In reaction to these upgrades, MicroStrategy’s stock rose over 6% in early trading, reflecting the growing optimism surrounding its Bitcoin strategy and the broader cryptocurrency market.
