Wall Street expects a potential 20% rally in MicroStrategy shares, citing its cryptocurrency-based strategy.
like I mentioned Posted by Seek Alpha on January 13, Pret garlicHe, who is head of cryptocurrency and digital asset research at Cantor Fitzgerald, said he believes MicroStrategy (MSTR) shares will reach $613. Currently, the average MSTR price on Wall Street is $518. If MSTR reaches $613, its stock prices will rise by approximately 20%.
Knoblauch expects MSTR shares to rise, writing in a note that the company "has developed a capital markets flywheel that allows it to add bitcoin cumulatively on a per-share basis."
He also credits Bitcoin (Bitcoin) Cantor adds that the post-US election rally as a factor boosted MSTR, which is why the company raised about $18 billion in capital in November and December of 2024.
The expert also calculated that MicroStrategy could issue $6.7 billion in shares, $2 billion the favoriteAnd $18 billion in debt and another 287,000 bitcoins to support his forecast.
MicroStrategy is expected to continue to enjoy a return of more than 10% on Bitcoin until 2025 - and this could mean an additional $400 million for the US Treasury through MicroStrategy, Knoblauch believes.
“Ultimately, we expect 2025 to be another year where MSTR delivers a BTC yield of over 10%, indicating treasury operations profits of over $4 billion.”
Pret garlic
MicroStrategy's "21/21" plan has already been launched, where the company wants to accumulate $42 billion worth of BTC over the next three years. The giant company has been buying Bitcoin since August 2020 where it acquired 21,454 Bitcoins for approximately $250 million at an average price of around $11,653 per Bitcoin.
The company's last purchase took place yesterday, on January 13, when it was purchased 2,530 Bitcoin to $243 million dollars, which increases market optimism. As of today, MicroStrategy has 450,000 BTC in its wallet.
In the past 24 hours, MSTR price has risen by 0.49% to $328.40while the price of BTC rose +0.43% to $94,932, which is a close match in terms of percentage gains. This similarity comes from the strength of MicroStrategy relationship With the price of BTC Since the company's strategy is primarily based on its ownership and acquisition of BTC, its shares are therefore sensitive to fluctuations in the value of BTC.
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