BTIG’s analysts updated their price target for MicroStrategy (NASDAQ:MSTR) to $1,800 from the previous $780, continuing with a Buy rating. The substantial year-to-date surge of 155% in MSTR’s stock is attributed to three main factors: a 50% increase in bitcoin’s price, positively impacting MicroStrategy’s strategy of bitcoin acquisition and holding; capital raises through equity and convertible debt, enhancing bitcoin per share for equity holders; and the growth in the implied premium of MicroStrategy’s bitcoin holdings within a sum-of-the-parts valuation, now exceeding 2x from an average of about 1.5x over the past year.
The analysts maintain a bullish outlook, increasing the target price to reflect the new norm above 2x for the company’s bitcoin holdings’ implied premium. Additionally, they anticipate further benefits for the company from upcoming bitcoin-related events, especially the expected Bitcoin halving this month.