Canaccord raised its price target for MicroStrategy stock (MSTR) to $300 from $173, as it keeps a “Buy” rating on the stock. The firm noted that MicroStrategy announced a $21 billion ATM stock offering that management intends to utilize, along with selective fixed-income offerings, to fund up to $42 billion of Bitcoin purchases over the next three years.

MicroStrategy Stock a “Buy” – Canaccord

Canaccord recently upped the price target for MicroStrategy stock to $300 from $ 173 while leaving its “buy” rating on the stock intact. At the same time, shares were down 0.64% and trading at $242.94 on Friday.

MSTR, co-founded by Michael Saylor, became one of the better ways equity investors can get exposure to Bitcoin. Due to its strategic model of acquiring BTC, it has emerged as the favorite choice of investors who want to capitalize on price action in Bitcoin without actually buying the cryptocurrency.

If stock performance is any proxy for business model strength, then MSTR is one of the best in its class,” Canaccord analysts led by Joseph Vafi said. Since the company implemented its Bitcoin strategy in 2020, it has outperformed the broader stock market and Bitcoin, proving its leverage toward maximum shareholder returns when the cryptocurrency rises.

MicroStrategy Doubles Down on Bitcoin, Eyes $42B Investment

The company also recently announced that it will raise $21 billion through an at-the-market offering of its stock, some of which it will use to buy additional Bitcoin. The offering forms part of a general move the company is making to spend $42 billion over the next three years on buying Bitcoins- a pledge to an aggressive Bitcoin acquisition plan.

Analyst: MSTR’s Bitcoin Bet is Paying Off

Benchmark analyst Mark Palmer recently also followed and lifted the price target for MicroStrategy stock to $300 from $245. The stock was trading at $248 as of 2 pm ET Thursday, up 0.4% on the day. The company’s aggressive Bitcoin buying program kicked off in August 2020, and it has seen the company commit $9.9 billion through capital markets and cash flow to amass its hoard of Bitcoins.

Now, MicroStrategy plans to raise $10 billion in 2025, $14 billion in 2026, and $18 billion in 2027, a phase Palmer describes as “even more audacious.” He emphasizes the strategy’s success, with MSTR’s stock up about 1,700% since adopting Bitcoin as its reserve asset.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies.

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