Bernstein Raises MSTR Target As MicroStrategy Buys 55.5K BTC

Bernstein Raises Its MSTR Price Target To $600 As MicroStrategy Buys Another 55.5K BTC For $5.4 Billion

Updated: 26 November 2024

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Bernstein has raised its price target for MicroStrategy (MSTR) from $290 to $600 while maintaining its outperform rating for the stock as the company spends $5.4 billion to purchase an additional 55,500 Bitcoins.

“We believe Bitcoin is in a structural bull market with conducive regulation and US government support, institutional adoption and favorable macro,” Bernstein analysts led by Gautam Chhugani wrote in a Nov. 25 report.

Bernstein Expects MicroStrategy To Own 4% Of BTC’s Supply By 2033

The Bernstein analysts wrote in the report that they expect MicroStrategy to own 4% of Bitcoin’s total supply. This comes after the software firm said that it intends on buying another $42 billion worth of BTC over the next 3 years.

Staying true to its commitment to add to its Bitcoin stockpile, MicroStrategy purchased 55,500 BTC on Nov. 25, according to data from Saylor Tracker. With this recent buy, the firm acquired each Bitcoin at an average price of $97,862.

MicroStrategy has acquired 55,500 BTC for ~$5.4 billion at ~$97,862 per #bitcoin and has achieved BTC Yield of 35.2% QTD and 59.3% YTD. As of 11/24/2024, we hodl 386,700 $BTC acquired for ~$21.9 billion at ~$56,761 per bitcoin. $MSTR https://t.co/79ExzXk4UM

— Michael Saylor⚡️ (@saylor) November 25, 2024

The latest purchase has pushed MicroStrategy’s BTC holdings to 386,700 BTC. At current prices, the dollar value of the holdings is estimated to be more than $35.71 billion.

Since MicroStrategy bought the 55,500 BTC, the leading crypto’s price has pulled back more than 6% to trade at $91,965.53 as of 8:38 a.m. EST. As a result, the firm has lost over $281.94 million with its most recent BTC buy.

MicroStrategy’s 300% Premium Not Sustainable, Says Steno Research

While Bernstein is bullish on MSTR, there are others that have a more bearish outlook for the stock. In an Oct. 25 research note, Steno Research said that MicroStrategy’s 300% premium over the value of its Bitcoin holdings cannot be sustained.

In recent months, MicroStrategy's stock price has been on a substantial upward trajectory, while the value of its Bitcoin holdings has only increased slightly.

In other words, MicroStrategy's premium to Bitcoin is now trading at a much higher level than it did for much of 2021. pic.twitter.com/rQaRjJ1HGK

— Mads Eberhardt (@MadsEberhardt) October 28, 2024

In the note, analyst Mads Eberhadt listed the availability of spot Bitcoin ETFs (exchange-traded funds) as well as the options trading on these investment products as possible factors that could reduce the incentive for investors to invest in MSTR.