Originally published on: October 31, 2024
MicroStrategy’s ambitious plan to acquire $42 billion worth of Bitcoin by 2027 is generating excitement among shareholders, according to a recent analyst report. The company’s announcement of the “21/21 Plan,” which involves raising $21 billion in equity and $21 billion in debt for a massive BTC buying spree, has caught the attention of investors.
Benchmark fintech analyst Mark Palmer believes that MicroStrategy’s stock (MSTR) could soar to $300 if they successfully execute the 21/21 Plan. This represents a significant jump from his previous price target of $245. Palmer’s optimistic outlook is driven by his expectation of continued Bitcoin price appreciation, with a projected value of $175,000 by the end of 2025.
“MicroStrategy’s strategic focus on acquiring Bitcoin has been commendable, and the company has built a solid track record over the past few years,” Palmer stated in the analyst report. The company’s unique performance metric, Bitcoin yield, has also been a key focus for investors. This metric measures the ratio of BTC holdings to outstanding shares, setting BTC-per-share as a benchmark for corporate performance.
As of September, MicroStrategy held over 250,000 BTC, valued at more than $17 billion. With the total market capitalization of MSTR shares standing at around $42 billion, the company’s aggressive Bitcoin acquisition strategy is expected to drive significant value for shareholders. Management has raised the annual target for MSTR’s BTC Yield over the next three years to reflect the anticipated impact of the 21/21 Plan.
In a bold suggestion, Palmer recommended that MicroStrategy explore opportunities to generate yield by lending out a portion of its Bitcoin holdings. This innovative approach could further enhance the company’s strategic position in the market.
As MicroStrategy continues on its path of Bitcoin accumulation, investors are closely watching the company’s progress and eagerly anticipating the potential rewards that may come from this bullish strategy.
