Bernstein initiated research coverage of MicroStrategy on Thursday, giving the company an outperform rating and a price target of $2,890. This suggests a potential upside of 80% from the stock’s closing price of $1,483.88. MicroStrategy has seen significant growth this year, up 135%, compared to bitcoin’s 57% increase in the same period. The company has transformed from a small software provider to the largest bitcoin holding company, owning 1.1% of the world’s Bitcoin supply valued at approximately $14.5 billion.
MicroStrategy’s founder and chairman, Michael Saylor, has become known for his strong support of bitcoin and has positioned the company as a leading player in the cryptocurrency market. The company has adopted an aggressive bitcoin acquisition strategy since August 2020 and has shifted its focus to bitcoin development this year.
Bernstein analyst Gautam Chhugani explains that MicroStrategy’s active bitcoin strategy has outperformed passive spot ETFs, delivering higher returns over the last four years. The company’s Bitcoin Net Asset Value (NAV) per share has grown significantly, showing a 67% increase from the fourth quarter of 2020 to the present.
As part of their analysis, Bernstein has raised their bitcoin target price to $200,000 in 2025, up from their previous target of $150,000. This optimistic outlook is driven by MicroStrategy’s strong position in the market and its active bitcoin strategy.