Originally published on: October 18, 2024
Investing in MicroStrategy could lead to significant gains, despite the current premium on the stock, according to an analyst report. The company’s shares, trading at a premium to the net asset value of its Bitcoin portfolio, have the potential to reach $245 per share. As MicroStrategy ramps up its Bitcoin acquisitions and explores lending options, Benchmark fintech analyst Mark Palmer suggests the stock could climb even higher.
With shares of MSTR currently trading at $206, Palmer has revised his price target upward from $215. While some may question the premium valuation, Palmer believes that MicroStrategy’s unconventional approach to shareholder value creation through Bitcoin investments sets it apart from traditional metrics.
Having accumulated over 250,000 BTC valued at $17 billion, MicroStrategy continues to make waves in the cryptocurrency market. Its unique performance metric of Bitcoin yield, which measures BTC holdings against outstanding shares, reflects a commitment to leveraging the digital asset for corporate growth.
Palmer also recommends that MicroStrategy explore generating yield by lending out a portion of its Bitcoin holdings. By capitalizing on arbitrage opportunities and accruing more Bitcoin per share, MicroStrategy could drive further price appreciation in the coming months.
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