Benchmark Starts MicroStrategy (MSTR) at Buy, 'Timely Play on Upcoming Bitcoin Halving'
Benchmark initiates coverage on MicroStrategy (NASDAQ: MSTR) with a Buy rating and a price target of $990.00.
The analyst comments "We are initiating coverage of MicroStrategy (MSTR) with a Buy rating and a price target of $990 based on a sum-of-the-parts analysis that combines (1) our estimate of the year-end 2025 value of the company’s bitcoin holdings and (2) our estimate of the year-end 2025 value of its business intelligence software business. MSTR offers a unique business model focused on the acquisition and holding of bitcoins, which represent the bulk of the company’s valuation, with its software business serving in a supporting role as ballast to that valuation and a generator of cash flow used for the purchase of additional bitcoins. As such, the price of MSTR shares is highly correlated to the price of bitcoin (correlation coefficient of 0.94), although the company’s use of leverage to amass its bitcoin holdings can magnify its gains relative to those realized by the cryptocurrency."
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Shares of MicroStrategy closed at $796.48 yesterday.