MicroStrategy (MSTR) Stock Climbs Following Its Recent Plunge as the Company Continues to Load Up on Bitcoin

Shares of software company MicroStrategy (MSTR) climbed to $339.66 on Friday following its recent plunge. The rally came after the company announced that it bought 2,138 Bitcoin at an average price of $97,837 for a total of $209 million.

Shares of MicroStrategy (NASDAQ:MSTR) soared to $339.66 on Friday after the software company disclosed that it purchased 2,138 Bitcoin at an average price of $97,837, for a total of $209 million.

The recent rally follows the company’s announcement that it bought 2,138 Bitcoin at an average price of $97,837, for a total of $209 million. This marks the eighth consecutive week of Bitcoin purchases, bringing its total holdings to 446,400 Bitcoin, acquired at an average cost of $62,428 per coin. Don't Miss Our New Year's Offers:

But is MSTR a good stock to buy now? Here's what analysts have to say:

1) H.C. Wainwright Is Bullish on Crypto Like Michael Saylor, H.C. Wainwright is also bullish on crypto. The firm expects the crypto mining sector to boom in 2025, reaching a total market cap of $100 billion. It also predicts Bitcoin will hit $225,000 by year-end. The firm sees mining stocks outperforming Bitcoin itself as market fundamentals and prices continue to improve. It names pure-play miners Marathon Digital (NYSE:MARA), Riot Platforms (NASDAQ:RIOT), and CleanSpark (NASDAQ:CLSK) as its top picks.

2) MicroStrategy's Bitcoin Strategy Draws Both Praise and Skepticism The company's Bitcoin-heavy strategy has garnered both praise and skepticism. While MicroStrategy has outperformed Bitcoin and Nvidia (NASDAQ:NVDA) this year, also securing a spot on the Nasdaq 100 (NASDAQ:NDX), critics argue that the company operates more like a Bitcoin holding firm than a software company, exposing investors to high risk and volatility. Some analysts warn that such an aggressive Bitcoin strategy may hinder long-term shareholder stability, despite the company's short-term market gains.

However, CEO Michael Saylor, a staunch Bitcoin advocate, continues to extol the cryptocurrency's potential, maintaining that it is a transformative asset.

Is MSTR a Good Stock to Buy? Analysts have a Strong Buy consensus rating on MSTR stock, with eight Buys assigned in the past three months, as shown in theっけい below. However, after a 418% surge in its share price over the past year, the average MSTR price target of $529.57 per share suggests 55.9% upside potential.

MSTR stock price versus analyst ratings