MicroStrategy Hits Record High As Analyst Hikes Price Target On ‘Audacious’ Bitcoin Strategy: Retail Gets Nervous
By Stocktwits Inc | First Published Nov 19, 2024, 10:55 PM ISTBenchmark analyst Mark Palmer expects that by the end of FY26, MicroStrategy will have accumulated 543,200 bitcoins, with the price of Bitcoin reaching $225,000.
Shares of MicroStrategy, Inc. ($MSTR) surged as much as 7% on Tuesday, reaching a record high, on track for a third consecutive session of gains. Notably, the stock has added over 25% in just the past three trading sessions.
Benchmark analyst Mark Palmer raised the firm’s price target for MSTR to $450 from $300, maintaining a ‘Buy’ rating on the stock.
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Palmer’s new forecast reflects expectations that by the end of FY26, MicroStrategy will have accumulated 543,200 bitcoins, with the price of Bitcoin ($BTC.X) reaching $225,000.
This bullish outlook comes after the company revealed that it had acquired a record 51,780 bitcoins between Nov. 11 and Nov. 17, adding to its total holdings of 331,200 BTC.
Palmer noted that the company’s bold bitcoin strategy, which began in August 2020, was initiated by former CEO Michael Saylor, who described the move as a way to hedge against the debasement of the U.S. dollar by replacing cash with bitcoin as the company’s treasury reserve asset.
The analyst called Saylor’s move as “one of the most audacious strategies undertaken in U.S. corporate history.”
“While MSTR’s controversial strategy has attracted no small number of detractors, its impact on the company’s share price has provided support for its efficacy, as its stock has outperformed those of almost every large company in the U.S. during the past four-plus years,” Palmer said.
MicroStrategy’s recent bitcoin acquisition has led to an uptick in retail message volume. On Tuesday morning, however, its Stocktwits sentiment flipped into ‘bearish’ levels.
A Stocktwits poll shows that 67% of retail investors think that MSTR’s premium is too high currently, while 36% think that the price of bitcoin justifies it.
The recent rally in both Bitcoin and MSTR shares is mostly attributed to optimism surrounding Donald Trump’s presidential win, with many in the crypto community anticipating a relaxation of regulatory pressures.
Bitcoin rose about 1% to over $92,400 at 11:30 am ET. About 67% of retail investors on Stocktwits expect it to break $100,000 by Thanksgiving.
MSTR has been a standout performer, up over 500% this year, outpacing gains from other major tech stocks, broader indices, and even Bitcoin.
Retail interest in the stock has surged over the past year, with Stocktwits followers more than doubling and message volume skyrocketing by 31,750%.
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