The proliferation of institutional Bitcoin custodians creates opportunities for MicroStrategy, according to a Benchmark analyst.
MicroStrategy’s Bitcoin $BTC $63,821 buying spree has been a “key driver of its stock’s outperformance,” and the company should consider “beginning to generate yield by lending out a portion of its Bitcoin holdings,” according to a Sept. 24 analyst report shared with Cointelegraph.
The company’s stock, MSTR, could be worth $215 per share if MicroStrategy continues to leverage its balance sheet to buy more BTC and starts lending out the digital currency for low-risk yield, according to Benchmark fintech analyst Mark Palmer.
Shares of MSTR currently trade at around $153 after a 10-for-1 stock split on Aug. 9. MicroStrategy’s core business is enterprise software. Still, its public market valuation is mainly from holding BTC, which it started accumulating in 2020.
On Sept. 18, executive chairman Michael Saylor said in a podcast that Bitcoin could become a form of “perfected capital” that serves as a store of value and generates low-risk yield from digital banking services, such as lending and borrowing.
