MicroStrategy’s stock jumped by over 7.8% in the last 24 hours to about $236.12, marking a new 25-year high as Bitcoin’s prices continue to surge. At the start of September, when Bitcoin was still trading below $60,000, MicroStrategy shares were as low as $118 on September 6. However, with Bitcoin currently going for about $68,000, the firm’s stock has more than doubled since then.
MicroStrategy aims to become a Bitcoin bank amid the rise in stock
MicroStrategy co-founder and Executive Chairman Michael Saylor commented earlier this month on the company’s shift to Bitcoin:
“We saw Bitcoin as a big tech monetary network, like Google for money or Facebook for money. We are in the core business of creating Bitcoin capital market instruments across equity, convertibles, fixed income, and preferred shares.”
~Michael Saylor
He added that the company aims to grow into a Bitcoin bank that offers investors risk-adjusted tools and access to Bitcoin’s price movements.
Saylor even claimed that without MicroStrategy, multiple billions of dollars in traditional finance markets would not be in Bitcoin right now. He explained that the company’s strategy is to recycle capital, arguing that investing in Bitcoin could triple the returns on the original investment. He expressed his optimism that MicroStrategy could soon grow into a trillion-dollar company.
MicroStrategy currently holds 252,220 Bitcoin worth over $17 billion. Its shares have now spiked by 7.8% in the last 24 hours from about $219.03 to $236.12. The rise in share prices is mainly attributed to the subsequent spikes in Bitcoin, with Bitcoin currently trading at $68,000, representing a 20% rise from its price on September 6.
Asset manager Bernstein expects MicroStrategy stock to hit $290
In its report, asset manager Bernstein predicted that the MSTR stock would soar to $290, basing its target for the company on the expected jump in Bitcoin to over $1 million by 2033.
According to its analysts, investors should see the Bitcoin investment company as an active asset equity plan, arguing that it switches between equity and long-term convertible debt, prioritizing a conservative leverage strategy.
Analysts Gautam Chhugani, Mahika Sapra, and Sanskar Chindalia even praised Michael Saylor, stating that he had initiated the Bitcoin treasury model for corporates.
