Bernstein Raises Its MSTR Price Target To $600 As MicroStrategy Buys Another 55.5K BTC For $5.4 Billion
Bernstein has raised its price target for MicroStrategy (MSTR) from $290 to $600 while maintaining its outperform rating for the stock as the company spends $5.4 billion to purchase an additional 55,500 Bitcoins.
“We believe Bitcoin is in a structural bull market with conducive regulation and US government support, institutional adoption and favorable macro,” Bernstein analysts led by Gautam Chhugani wrote in a Nov. 25 report.
Bernstein Expects MicroStrategy To Own 4% Of BTC’s Supply By 2033
The Bernstein analysts wrote in the report that they expect MicroStrategy to own 4% of Bitcoin’s total supply. This comes after the software firm said that it intends on buying another $42 billion worth of BTC over the next 3 years.
Staying true to its commitment to add to its Bitcoin stockpile, MicroStrategy purchased 55,500 BTC on Nov. 25, according to data from Saylor Tracker . With this recent buy, the firm acquired each Bitcoin at an average price of $97,862.
The latest purchase has pushed MicroStrategy’s BTC holdings to 386,700 BTC. At current prices, the dollar value of the holdings is estimated to be more than $35.71 billion.
Since MicroStrategy bought the 55,500 BTC, the leading crypto’s price has pulled back more than 6% to trade at $91,965.53 as of 8:38 a.m. EST. As a result, the firm has lost over $281.94 million with its most recent BTC buy.
MicroStrategy’s 300% Premium Not Sustainable, Says Steno Research
While Bernstein is bullish on MSTR, there are others that have a more bearish outlook for the stock. In an Oct. 25 research note , Steno Research said that MicroStrategy’s 300% premium over the value of its Bitcoin holdings cannot be sustained.
In the note, analyst Mads Eberhadt listed the availability of spot Bitcoin ETFs (exchange-traded funds) as well as the options trading on these investment products as possible factors that could reduce the incentive for investors to invest in MSTR.
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