MicroStrategy (MSTR) Stock Price Target Raised by 91% to $650 by Benchmark Analysts as BTC Buying Spree Continues

MicroStrategy continues its Bitcoin buying spree, adding 1,070 BTC $101 935 24h volatility: 4.0% Market cap: $2.02 T Vol. 24h: $51.69 B to its kitty

MicroStrategy (NASDAQ:MSTR) has announced the purchase of 1,070 additional BTC for an investment value of $101 million, bringing its total Bitcoin holdings to 447,470. The news comes as part of the company's broader strategy to continue acquiring digital assets.

According to the company's disclosure, the latest BTC purchase was made at an average price of $94,000 during the last week of December. This marks the first Bitcoin purchase by MicroStrategy following its announcement to raise funds through perpetual preferred stock for further acquisitions.

The recent purchase also comes after MicroStrategy announced its financial results for the fourth quarter, where the Bitcoin holding company reported another $1 billion of impairment losses. However, the company's balance sheet will expand from $17.9 billion to just under $24 billion as it switches to fair-value accounting for its crypto holdings.

For Q4 2024, MicroStrategy generated a BTC yield of 48% and a massive 74.3% for the financial year (FY) 2024.

Benchmark Analysts See 91% Upside In MicroStrategy (MSTR) Stock

For the year 2024, the MicroStrategy (MSTR) stock rallied by a staggering 330% while outperforming Bitcoin gains by a margin of 3x. Benchmark analysts Mark Palmer, have reiterated their “buy” rating on the stock, setting a price target of $650. This represents a 91% upside from its current price—highlighting the company’s growing Bitcoin holdings and the promising potential of its software business.

“We believe MSTR’s plan to tap the perpetual preferred market underscores the shareholder value it has been creating through its treasury operations, which helps to justify the premium to the company’s net asset value at which its stock trades”, Benchmark analyst Mark Palmer noted.

Last Friday, MicroStrategy announced its plan to raise $2 billion in Q1 2025 through one or more offerings of perpetual preferred stock, which will take priority over its Class A common stock. It’s part of the company’s broader strategy of securing $42 billion in capital by 2027 via at-the-market stock sales and convertible debt offerings.

Executive chairman Michael Saylor stated that the company has already achieved two-thirds of its equity-raising target. MicroStrategy requires ongoing capital infusion to continue its Bitcoin acquisition strategy, as its core software business has reported net losses in three of the past four quarters.

Palmer highlighted that issuing perpetual preferred stock could attract a more conservative investor base, such as insurance companies, pension funds, and banks, seeking lower-volatility investments.