Analysts overhaul MicroStrategy stock price target amid bitcoin rally
Updated at 10:29 AM EST
MicroStrategy shares turned lower in early Monday trading as bitcoin prices continue to test the $100,000 mark and a pair of Wall Street analysts boosted their price targets on the world's biggest holder of the world's biggest cryptocurrency.
MicroStrategy shares (MSTR) have soared more than 500% so far this year, adding more than $75 billion in market value, as CEO Michael Saylor executed a series of capital raising efforts designed to add to the group's bitcoin holdings.
Bitcoin prices, which have had an enormous comeback this year in the wake of the FTX platform collapse and the Securities and Exchange Commission's approval of a spot exchange-traded fund in early January, are up 133% and have come within a whisker of breaching $100,000.
MicroStrategy, in fact, said in an SEC filing Monday that it purchased 55,000 bitcoin last week at just under $98,000.
"Twenty Twenty-four has been a great year," Saylor told investors last month. "The launch of the ETFs at the beginning of the year was a major milestone. The embrace of bitcoin by major political parties is a second milestone. I think we can see movement toward normalization of bitcoin."
"If you've been following our journey, you know that our thesis was bitcoin is like the Facebook of money or the Google of money," he added. "It is the dominant digital monetary network. It's a network that everybody in the world needs, nobody in the world can stop, and most conventional investors don't understand."
Image source: Twitter.
Many investors see further gains ahead for the world's benchmark cryptocurrency as President-elect Donald Trump has vowed to make the U.S. the "crypto capital of the planet" and create a government-backed fund that some see as a mechanism to ultimately pay down the national debt.
