Summary
Benchmark initiates coverage of MicroStrategy (MSTR) with a buy rating and $990 price target. MicroStrategy’s unique business model is based on acquiring and holding bitcoin, which represents the majority of the company’s valuation. Analysts believe the demand for bitcoin will increase due to the launch of spot bitcoin ETFs and reduced supply from halving, potentially driving the price higher. MicroStrategy’s software business generates cash flow to buy more bitcoin, acting as a ballast to its valuation. The company recently purchased an additional 3,000 BTC, bringing its total holdings to 193,000 coins.
Key Points
1. MicroStrategy has a unique business model based on the acquisition and holding of bitcoin (BTC), which represents the majority of the software company’s valuation, according to Benchmark research.
2. Benchmark has a buy rating on MicroStrategy shares with a $990 price target, citing the potential for a boost in demand for bitcoin and reduced supply due to the halving.
3. MicroStrategy is the largest corporate owner of bitcoin, recently purchasing an additional 3,000 tokens for $155 million, bringing its total holdings to 193,000 coins.