Wall Street predicts a potential 20% increase in MicroStrategy stock driven by its cryptocurrency strategy.
Market analysts have identified MicroStrategy (MSTR) as a stock poised to reach $613, an increase from the current average price of $518. This projected rise reflects a significant 20% growth opportunity, as highlighted by a leading investment research firm.
The optimism surrounding MicroStrategy’s future performance stems from its innovative approach to capital markets and Bitcoin investment strategy. Analysts suggest that the company has successfully created a mechanism to add Bitcoin on a per-share basis, enhancing its overall valuation.
The recent surge in Bitcoin’s price post-U.S. elections has also been a contributing factor, further reinforcing MicroStrategy’s position in the market. The company raised approximately $18 billion in capital during November and December of 2024, a move that underscores its aggressive expansion in cryptocurrency holdings.
Financial projections indicate that MicroStrategy could issue $6.7 billion in equity along with significant preferred shares, debt, and additional Bitcoin to support its stock price forecast. The firm is anticipated to maintain a yield exceeding 10% on its Bitcoin holdings until 2025, potentially resulting in an estimated $400 million contribution to U.S. treasury revenue as stated by market analysts.
“We expect 2025 to deliver another year where MicroStrategy achieves a Bitcoin yield over 10%, indicating profits from treasury operations could exceed $4 billion.”
MicroStrategy has initiated its ambitious “21/21” plan, aimed at accumulating $42 billion in Bitcoin over the next three years. Since beginning its purchasing strategy in August 2020, the firm has acquired a total of 21,454 BTC for around $250 million at an average price of $11,653 per Bitcoin.
The latest acquisition, which occurred on January 13, involved the purchase of roughly 2,530 BTC for $243 million, further enhancing market confidence. MicroStrategy currently holds a robust portfolio of approximately 450,000 BTC.
In recent trading, the price of MSTR increased by 0.49%, reaching $328.40, aligning closely with Bitcoin’s price increase of 0.43% to $94,932. This correlation reflects MicroStrategy’s strategy, heavily reliant on its Bitcoin ownership and market dynamics, making its stock susceptible to fluctuations in Bitcoin’s value.
