Shares of MicroStrategy could see a 30% increase if Bitcoin reaches $150,000 by the end of 2025, according to an Aug. 2 analyst report shared with Cointelegraph. Benchmark fintech analyst Mark Palmer suggests that the stock could climb to $2,150 per share, given that MicroStrategy continues the Bitcoin purchasing spree initiated by founder Michael Saylor in 2020. Currently, the stock trades at approximately $1,450.
âOur valuation assumes that [MicroStrategy] will continue to aggressively accumulate Bitcoin during the next 1.5 years and that Bitcoinâs price will reach $150,000 by the end of 2025,â Palmer told Cointelegraph via email.
On its Aug. 1 earnings call, MicroStrategy reaffirmed its commitment to Bitcoin by introducing a unique performance metric: Bitcoin yield. This metric measures the ratio of BTC holdings to outstanding shares, effectively setting BTC-per-share as a key performance indicator. The goal is to âdemonstrate the efficacy of its bitcoin acquisition strategy and its use of intelligent leverage,â Palmer explained.
âWhile [MicroStrategyâs] approach has had plenty of detractors, [âŠ] management has responded to criticism by pointing to the scoreboard: since the company adopted its bitcoin acquisition strategy on August 10, 2020, the companyâs stock has appreciated by 1,206%,â the report noted, adding that MicroStrategy has significantly outperformed both Bitcoin and other stocks during this period.
Benchmarkâs âbuyâ rating is âbased on a sum-of-the-parts analysis that combines (1) our estimate of the year-end 2025 value of the companyâs Bitcoin holdings and (2) our estimate of the year-end 2025 value of its enterprise software business,â Palmer stated.
MicroStrategyâs stock has declined by about 10% since its investor call, following losses of $5.74 per share, attributed to declining revenue in its core enterprise software business. Despite this weak quarter, the company acquired 12,222 BTC for $805 millionâapproximately $65,800 per coinâfinanced through âcash flows, as well as proceeds from equity and debt financings,â CEO Phong Q. Le mentioned during the call.
MicroStrategy now holds a substantial stockpile of 226,500 BTC, valued at around $14.7 billion at current prices.