Bernstein believes MicroStrategy is creating the biggest bitcoin company in the world with 80% potential growth

MicroStrategy has caught the attention of analysts at Bernstein, who believe the stock could see another 80% upside thanks to its aggressive bitcoin buying strategy. The Wall Street firm initiated research coverage of MicroStrategy with an outperform rating and a price target of $2,890. This implies significant potential growth from the stock’s current price of $1,603.67. The company has undergone a transformation over the past year, evolving from a small software provider to the largest bitcoin holding company in the world. MicroStrategy now owns 1.1% of the global Bitcoin supply, valued at approximately $14.5 billion.

Michael Saylor, the founder chairman of MicroStrategy, has played a pivotal role in positioning the company as a leading player in the bitcoin space. Under his leadership, MicroStrategy has attracted significant capital, both debt and equity, to fuel its active bitcoin acquisition strategy. Since August 2020, the company has been actively buying bitcoin and has become closely associated with the cryptocurrency. This shift in focus has led MicroStrategy to trade as a proxy for bitcoin’s price movement, outperforming the digital asset with a 138% year-to-date gain compared to bitcoin’s 57% increase.

MicroStrategy’s strategy differs from traditional passive bitcoin investments like ETFs, as it positions itself as an “active-leveraged” bitcoin strategy. The company’s approach has resulted in significant growth in its bitcoin holdings, outperforming the spot price of the cryptocurrency. Over the last four years, MicroStrategy’s bitcoin $ NAV per share has increased approximately 4-fold, beating the 2.4x growth in bitcoin’s spot price. The company’s bitcoin per share has grown from 6 BTC per diluted share in the fourth quarter of 2020 to 10 BTC per share currently.

Bernstein’s bullish outlook on MicroStrategy extends to its bitcoin target price, which was raised to a “cycle-high” of $200,000 in 2025 from the previous target of $150,000. This upward revision reflects the firm’s optimism about the future growth potential of both MicroStrategy and the cryptocurrency market. With its innovative approach and strong leadership, MicroStrategy has positioned itself as a key player in the evolving digital asset space. The company’s aggressive bitcoin buying strategy has not only boosted its stock performance but also solidified its reputation as a leading bitcoin company.

In conclusion, MicroStrategy’s aggressive bitcoin buying strategy has positioned the company for significant growth potential in the future. Analysts at Bernstein believe that the stock could see another 80% upside, based on its current trajectory and strong leadership under Michael Saylor. By actively acquiring bitcoin and outperforming the cryptocurrency market, MicroStrategy has differentiated itself from traditional passive bitcoin investments. The company’s focus on bitcoin development and innovative approach to digital assets have garnered investor interest and propelled its stock to new heights. As the cryptocurrency market continues to evolve, MicroStrategy is well-positioned to capitalize on the opportunities that lie ahead.