MicroStrategy Stock Hits Highest Level Since March, Bernstein Predicts Further 51% Surge

Updated: 09 October 2024

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MicroStrategy (MSTR) shares soared to their highest level since March on Oct. 8, and Bernstein estimates there’s still another 51% upside potential.

Despite Bitcoin’s recent dip, MicroStrategy’s stock has defied the trend, outperforming both the broader market and Bitcoin itself. The MSTR price rose 3.3% yesterday to $192.20, has surged almost 20% in the past week, and almost 54% over the past month.

Bernstein analysts believe the outperformance with Bitcoin can continue, and project a potential rise to $290, driven by the company’s substantial Bitcoin holdings and long-term optimism for the crypto market.

MicroStrategy Stock Rises While Bitcoin Falls

Being the largest corporate holder of BTC, MicroStrategy’s share price often echoes the movements of the pioneering crypto. However, the recent increase in MSTR’s price has deviated from this trend. While the S&P 500 dropped 1% on Monday, BTC also saw its price slide from $64K to $62.8K within an hour before closing the day off at $63.3K.

The last time MicroStrategy stock was valued at $190 was in March, a few weeks after the company disclosed that it had acquired an additional 12,000 Bitcoins.

The latest uptick comes almost a month after the firm’s latest BTC purchase of 18,300 Bitcoin between August and September, its largest purchase since 2021.

MicroStrategy, led by Bitcoin permabull Michael Saylor, now holds 252,220 Bitcoins, amounting to 1% of the total BTC in circulation, and equivalent to about 43% of the company’s market capitalization.

Bernstein Analysts See Bitcoin Hitting $1 Million By 2023

The Bernstein analysts see Bitcoin hitting $1 million by 2033, and that MicroStrategy will continue its accumulation of BTC. In their report, the analysts also noted that MSTR’s price is up approximately 13X since the firm started accumulating Bitcoin, “outperforming Bitcoin, gold, S&P, Nasdaq, small cap software.”

Four years ago today, MicroStrategy adopted #Bitcoin as its primary treasury reserve asset; since then $MSTR has outperformed 499 of 500 stocks in the S&P 500. pic.twitter.com/Db7GVeyc9a

— Michael Saylor⚡️ (@saylor) August 11, 2024

Bitcoin recorded a slight correction in the last 24 hours, but remains in the green on the weekly time frame. As a result, BTC is trading at $62,003 as of 8.33 a.m. EST.