TD Cowen raised the firm’s price target on MicroStrategy (MSTR) to $525 from $392 and keeps a Buy rating on the shares after the company announced it had issued another $2.5B of equity under its at-the-market program, “fresh off” last week’s successful $3B convertible bond issuance, with all proceeds used yet again to purchase bitcoin. The firm now models $108B of intrinsic bitcoin value by the end of FY27, which it says “could prove conservative.” MicroStrategy’s ability to tap the capital markets in size reflects that the market has accepted the company’s announced strategy to acquire and hold bitcoin and to use its balance sheet to do so on terms that are “clearly and demonstrably accretive to existing shareholders,” the analyst added.
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Read More on MSTR:
- Trump Trade: TikTok CEO seeks Musk’s counsel on Trump presidency
- Microstrategy Highlights BTC Yield in Recent Disclosures
- MicroStrategy price target raised to $650 from $450 at Benchmark
- MicroStrategy acquired 55,500 bitcoins for about $5.4B from Nov. 18-24
- MicroStrategy price target raised to $515 from $275 at Barclays
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
