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© Reuters. Microstrategy (MSTR) started with a Buy rating on Benchmark based on a Bitcoin forecast of $125,000
Microstrategy, Inc. (NASDAQ:) was given a buy rating and a $990 per share price target at Benchmark on Tuesday in a note from the company to clients.
Analysts said the stock is a timely option for the upcoming Bitcoin halving. The company’s price target for the stock is based on the assumption that Bitcoin price will reach $125,000 by the end of 2025, up from yesterday’s price of $54,578.
The valuation and price target are based “on a sum-of-the-parts analysis that combines (1) our estimate of the value of the Company’s Bitcoin holdings at year-end 2025 and (2) our estimate of the value at year-end 2025″ of its business intelligence software business,” Benchmark explained.
“It is noteworthy that the first three halvings were associated with an increase in the price of Bitcoin,” they added. “In the year following the first halving in November 2012, the price of Bitcoin rose from around $12 to almost $1,000. After the July 2016 halving, Bitcoin recovered from $650 to $2,550 in 12 months.”
Additionally, the company believes that the increased demand for Bitcoin resulting from the launch of several spot Bitcoin ETFs, combined with the reduced supply of coins caused by the halving, “has the potential to drive the price of the cryptocurrency significantly higher over the course of the year to go higher.” the next few years.”
“While some observers have suggested that the introduction of spot Bitcoin ETFs in the US would weigh on MSTR’s share price, as equity investors who bought the stock as a Bitcoin proxy have a new range of such proxies to choose from, the Stock continues to offer.” “In our eyes, it represents a unique value proposition for investors,” Benchmark explained.
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