BTIG, a global provider of investment banking and research services, has hiked its price target for Virginia-based business intelligence firm MicroStrategy (MSTR) to $240. This marks a dramatic increase from its previous price target of $180.

According to BTIG, the implied Bitcoin premium within MicroStrategy's valuation is nearing a record peak.

The company's market cap currently stands at $42.45 billion, with its shares trading at $210 a pop. Its shares have increased by nearly 61% over the last six months. For comparison, the total value of MicroStrategy's Bitcoin holdings stands at $17 billion.

Earlier, BTIG analysts opined that this premium is supported by those investors who might not have the ability to gain exposure to Bitcoin itself or the shares of exchange-traded funds.

Investors do not typicallyview MicroStrategy as purely a Bitcoin proxy since it is still a profitable company that makes strategic treasury decisions. Moreover, it is common for companies to trade at multiples of their net assets.

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Some investors might believe that the price of Bitcoin is going to substantially increase in the future, which is why MSTR is trading at such a high implied premium.

Earlier this month, MicroStrategy cofounder Michael Saylor spoke about his ambitious plan to turn the business intelligence firm into a "Bitcoin bank" with a valuation exceeding $1 trillion.

At the same time, Saylor has acknowledged that his company was "misunderstood," arguing that it should be treated as a real estate development firm that deals with Bitcoin instead of real estate.

Saylor has predicted that the price of Bitcoin could potentially reach $13 million roughly 20 years from now.