MicroStrategy (MSTR) Stock Ideal For Gaining Bitcoin (BTC) Exposure

In a research report published yesterday, financial services firm Canaccord reiterated that buying MicroStrategy stocks remains one of the best ways for investors to gain exposure to BTC.

Financial services firm Canaccord recently highlighted MicroStrategy's (NASDAQ:MSTR) "intelligent leverage strategy" in its acquisition of Bitcoin (BTC), presenting an ideal opportunity for investors to gain exposure to the digital asset.

In a research note published on Monday, Canaccord reiterated its stance that purchasing MicroStrategy stock is still one of the best ways for investors to gain indirect exposure to BTC.

The firm highlighted MicroStrategy's overall Bitcoin acquisition strategy, including its latest "21/21 plan," which entails a $42 billion capital inflow, split evenly between At The Market (ATM) equity offerings and fixed-income securities.

The proceeds from this capital raise will be used to fund future BTC purchases, continuing to bolster MicroStrategy's holdings and increasing its Bitcoin yield to an average target of 8% over the next three years.

Canaccord notably raised MSTR's price target from $173 to $300, a roughly 73% increase, while maintaining a "buy" rating on the stock. At the time of writing, MSTR is trading at $238.55, down 2.43% during the trading session.

According to Canaccord, since MicroStrategy began its signature Bitcoin accumulation strategy in 2020, it has outperformed both the stock market and BTC. The report stated:

"If stock price is the true test for any business model, then in our view MSTR is hard to beat. We see potential for MSTR shares to continue trading at a premium to spot, given MicroStrategy's leverage strategy."

Moreover, the financial services firm expressed optimism regarding BTC's price, suggesting that the leading digital asset has benefited from the US Securities and Exchange Commission (SEC) approval of Bitcoin-based exchange-traded funds (ETFs).

The firm also noted the impact of the supply scarcity created by Bitcoin halvings on the digital asset's price. Notably, BTC underwent its halving on April 20, 2024, while the premier cryptocurrency was trading slightly above $64,000.

While halvings have historically acted as a bullish catalyst, leading to exceptional price appreciation, their effects typically manifest around 6-12 months later. However, some crypto analysts and research firms have expressed skepticism about the impact of this year's halving.

More Firms Emulating MicroStrategy's Bitcoin Strategy

An increasing number of firms globally are replicating MicroStrategy's Bitcoin prowess.

For example, recently, Japanese firm Metaplanet concluded a stock sale to raise $68 million for BTC purchases.

In September 2024, Semler Scientific, a Nasdaq-listed company, disclosed a purchase of 83 BTC, valued at approximately $5 million, increasing the firm's total BTC holdings to 1,012 BTC.

In a similar vein, Samara Asset Group, a German investment firm, recently announced plans to raise up to $33 million to augment its BTC holdings. BTC is currently trading at $69,678, having seen a slight decrease of 1.4% over the past 24 hours.