MicroStrategy Stock Rises Pre-Market As Mizuho Initiates Coverage With 'Outperform' Rating: Retail Remains Unsure

MicroStrategy Inc. (MSTR) shares edged up 1% in pre-market trade on Wednesday after analysts at Mizuho initiated coverage for the Bitcoin (BTC) proxy with an ‘Outperform’ rating.

According to TheFly, Mizuho analyst Dan Dolev is bullish about MicroStrategy’s prospects, citing Bitcoin’s potential to appreciate due to multiple tailwinds.

Mizuho's price target for the MicroStrategy stock is $515, implying an upside of nearly 52% from current levels.

MicroStrategy has employed a strategy of issuing debt and equity to fund its Bitcoin purchases. It has accumulated 471,107 units of cryptocurrency so far, and based on the current BTC price of $102,300, it is worth $48.25 billion.

In a Monday filing with the U.S. Securities and Exchange Commission (SEC), MicroStrategy disclosed that its average BTC purchase price is $64,511 per Bitcoin, or about $30.4 billion in aggregate.

Based on current Bitcoin prices, this puts MicroStrategy’s unrealized gains at 58.7%.

Mizuho’s Dolev underscored that MicroStrategy’s Bitcoin buying strategy, coupled with the potential for the cryptocurrency to appreciate in price, lends the MSTR stock price a premium.

The tailwinds for Bitcoin appreciation, according to Dolev, include rising global adoption, a favorable political environment due to the newly-elected U.S. President Donald Trump, and a slowing rate of growth in Bitcoin supply.

Retail sentiment on Stocktwits pointed to caution among users – it entered the ‘bearish’ (31/100) territory after being in the ‘bullish’ (72/100) zone a day ago.

MSTR sentiment and message volume January 29, 2025, as of 7:30 am ET | Source: Stocktwits

One user thinks the investors are “overthinking” and that Bitcoin believers should hold the MSTR stock.

MicroStrategy’s stock price has almost doubled over the past six months, while its one-year returns stand at a whopping 554%.

Bitcoin has gained a little over 47% in the past six months, while its one-year performance stands at gains of 136%.

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