What's Going On With MicroStrategy Stock?

MicroStrategy Inc. MSTR shares are trading higher Thursday as the price of Bitcoin BTC/USD crossed the $65,000 level.

What To Know:

Bitcoin has climbed following last week’s 50-basis point rate cut, and analysts at Bernstein also pointed to record-high gold prices bolstering Bitcoin as an alternative asset.

“Any signal of loose monetary policy and potentially weaker dollar, is positive for Bitcoin,” Bernstein noted.

Bitcoin also functions a hedge as a hedge against geopolitical uncertainty, according to a report by financial services firm NYDIG, and investors may be considering the upcoming Presidential election and rising tensions in the Middle East.

What Else:

On Monday, Microstrategy announced the completion of its latest $1.01 billion offering of senior convertible notes due 2028. The company disclosed in an SEC filing that it had acquired approximately 7,420 bitcoins between Sept. 13 and Sept. 19 for approximately $458.2 million in cash, using proceeds from the offering. 

As of Sept. 19, 2024, MicroStrategy held an aggregate of approximately 252,220 bitcoins, which were acquired at an aggregate purchase price of approximately $9.9 billion and an average purchase price of approximately $39,266 per bitcoin.

Read Next: Expect Healthy Online Spending This Holiday Season, Says Analyst: What To Know

Following the completion of the offering, Barclays analyst Ramsey El-Assal maintained an Overweight rating on MicroStrategy and raised the price target from $146 to $173. TD Cowen also maintained its Buy rating and raised its price target on MicroStrategy stock from $195 to $200.

MSTR Stock Prediction 2024:

When buying a stock for a longer time horizon, it is important for investors to assess where they think the stock is headed in the future.

When mapping a stock's future trajectory, investors should consider factors including the future earnings expectations and expected performance against a benchmark.

MicroStrategy’s revenue has grown at an average rate of 0.36% annually over the past 5 years. The average 1-year price target from analysts is $709.43, representing an expected 333.38% upside in 2025.

While past performance is not a guarantee of future results, investors should also look at a stock's historical performance when compared to both a benchmark index and the company's peers. Shares of MicroStrategy have seen an annualized return of 36.7%, outperforming the S&P500 index by 27.9%. This compares to 22.78% growth in the overall Information Technology sector. MicroStrategy has a beta of 0.65.

MSTR Price Action: According to Benzinga Pro, MicroStrategy shares are up 8.66% at $165.11 at the time of publication Thursday.

Read Also:

• What’s Going On With Snowflake Stock?

Image: Mister Dittenger from Pixabay