BTIG Raises Microstrategy Price Target to $1,800, Citing Bitcoin Exposure and Catalysts

BTIG, a prominent brokerage firm, has recently raised its price target for MicroStrategy to $1,800 from $780. The decision was based on the firm’s increased exposure to bitcoin on a per-share basis. According to BTIG, MicroStrategy is poised to benefit from upcoming bitcoin catalysts such as the halving event.

MicroStrategy, a software company known for its strategic acquisitions of bitcoin, has been generating significant value for its shareholders. BTIG reiterated its buy rating on the stock and highlighted the company’s track record of creating value. The stock was trading at around $1,617 at the time of publication, with year-to-date gains of 155%.

The surge in MicroStrategy’s stock price has been driven by various factors, including the rally in bitcoin prices and successful capital raises. Analysts Andrew Harte and Thomas Smith noted that the implied premium of MicroStrategy’s bitcoin holdings has more than doubled compared to the previous year, indicating strong investor support for the company’s strategic investments in cryptocurrency.

Investors have shown a willingness to pay a premium for exposure to bitcoin through MicroStrategy, especially those who may not have direct access to the cryptocurrency or ETFs. The company’s ability to raise capital for additional bitcoin purchases has further increased its exposure to the digital asset on a per-share basis.

Looking ahead, BTIG expects MicroStrategy to benefit from upcoming bitcoin catalysts, such as the halving event scheduled for later this month. The halving event, which occurs every four years, involves a 50% reduction in miner rewards, leading to a decrease in the rate of bitcoin supply growth.

Despite the positive outlook, MicroStrategy’s shares experienced a temporary dip last week following a report from short seller Kerrisdale Capital. The report highlighted the discrepancy between the implied bitcoin price in MicroStrategy’s stock and the actual spot price of the cryptocurrency. Kerrisdale argued that the stock was overvalued, leading to a short-selling position on the company.

Kerrisdale’s report is part of a broader trend of equity investors shorting shares of crypto-related companies, with total short interest in crypto stocks reaching $10.7 billion. MicroStrategy and Coinbase account for 84% of these bearish bets, according to a recent report from S3 Partners.

Despite the criticism from short sellers, MicroStrategy continues to attract investor interest due to its strategic investments in bitcoin and strong performance in the crypto market. As the company navigates the evolving landscape of digital assets, its ability to create value for shareholders remains a key focus for analysts and investors alike.