MicroStrategy’s Metoric Rise: A Closer Look at Its Bitcoin Strategy and Future Outlook

In recent news, Bernstein initiated research coverage of MicroStrategy on Thursday and gave the company an outperform rating and a price target of $2,890. This potential upside of 107% from the stock’s closing price of $1,483.88 suggests that MicroStrategy is on track for significant growth in the coming years.

MicroStrategy has seen remarkable growth this year, with an increase of 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 been instrumental in driving this growth through his strong support of bitcoin and positioning 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. With this newfound confidence in the future of microstrategy’s growth and adoption of crypto-currencies it looks like they will continue to shape and dominate this industry for years to come