Harold

World

Yield

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.
<img decoding="async" src="https://miro.medium.com/v2/resize:fit:1200/0*XlD5JAT5Ji5bH7vQ.jpg" alt="MicroStrategy Stock Raises Correlated with Bitcoin but Remains More Volatile and a Worse Investment | by Jesus Rodriguez | IntoTheBlock | Medium">
<h2 id="span-style-font-weight-400-bernstein-expects-microstrategy-to-own-4-of-btc-s-supply-by-2033-span">Bernstein Expects MicroStrategy To Own 4% Of BTC’s Supply By 2033</h2>
The Bernstein analysts wrote in the report that they expect <a href="https://insidebitcoins.com/news/bitcoin-price-analysis-as-microstrategy-buys-the-dip-with-another-5-4-billion-btc-experts-say-this-latest-ico-might-be-the-best-crypto-to-buy-now" rel="noopener noreferrer nofollow">MicroStrategy</a> 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 <a href="https://saylortracker.com/" rel="noopener noreferrer nofollow">Saylor Tracker</a>. With this recent buy, the firm acquired each <a href="https://insidebitcoins.com/news/5-meme-coins-set-to-explode-as-bitcoin-inches-closer-to-100000" rel="noopener noreferrer nofollow">Bitcoin</a> at an average price of $97,862.&nbsp;
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">
 MicroStrategy has acquired 55,500 BTC for ~$5.4 billion at ~$97,862 per <a href="https://twitter.com/hashtag/bitcoin?src=hash&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">#bitcoin</a> and has achieved BTC Yield of 35.2% QTD and 59.3% YTD. As of 11/24/2024, we hodl 386,700 <a href="https://twitter.com/search?q=%24BTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">$BTC</a> acquired for ~$21.9 billion at ~$56,761 per bitcoin. <a href="https://twitter.com/search?q=%24MSTR&amp;src=ctag&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">$MSTR</a> <a href="https://t.co/79ExzXk4UM" rel="noopener noreferrer nofollow">https://t.co/79ExzXk4UM</a>
 — Michael Saylor⚡️ (@saylor) <a href="https://twitter.com/saylor/status/1861033309934862601?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">November 25, 2024</a>
</blockquote>
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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.&nbsp;
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.
<h2 id="span-style-font-weight-400-microstrategy-s-300-premium-not-sustainable-says-steno-research-span">MicroStrategy’s 300% Premium Not Sustainable, Says Steno Research</h2>
While Bernstein is bullish on MSTR, there are others that have a more bearish outlook for the stock. In an Oct. 25 <a href="https://stenoresearch.com/crypto-moves/how-long-can-microstrategys-premium-to-bitcoin-last/" rel="noopener noreferrer nofollow">research note</a>, Steno Research said that MicroStrategy’s 300% premium over the value of its Bitcoin holdings cannot be sustained.
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">
 In recent months, MicroStrategy's stock price has been on a substantial upward trajectory, while the value of its Bitcoin holdings has only increased slightly.
 In other words, MicroStrategy's premium to Bitcoin is now trading at a much higher level than it did for much of 2021. <a href="https://t.co/rQaRjJ1HGK" rel="noopener noreferrer nofollow">pic.twitter.com/rQaRjJ1HGK</a>
 — Mads Eberhardt (@MadsEberhardt) <a href="https://twitter.com/MadsEberhardt/status/1850825408318517294?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">October 28, 2024</a>
</blockquote>
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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.&nbsp;
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Bernstein Raises Its MSTR Price Target To $600 As MicroStrategy Buys Another 55.5K BTC For $5.4 Billion

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