Michael Saylorâs MicroStrategy is back in the news, with its stock trading at a 25-year high. TradingViewâs recent data shows that MicroStrategy (MSTR) hit $235.89 in Thursdayâs session. The stockâs price increased by more than 7% on October 25th. MicroStrategyâs price action last Thursday continued its 6-week rally and came ahead of its scheduled Q3 earnings report.
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This weekâs stock performance reflected the companyâs consistent growth over the past few years. MicroStrategy has outperformed most of its peers in the S&P 500 index and even outpaced Microsoftâs growth since 1999. According to observers, MicroStrategy is bullish, with market analysts listing $245 as the stockâs next target.
MicroStrategy Continues Its Bitcoin Focus
MicroStrategy, a Virginia-based Bitcoin development company, is currently the worldâs largest corporate holder of Bitcoin, with 252,222 BTC. With Bitcoinâs current price of $67,392, the company holds more than $17 billion in assets.
MicroStrategy Stock Hits New Highs
MicroStrategyâs stock (MSTR) has soared over 7% to a 25-year high of $236, with a current market cap of $47 billion, overtaking Microsoft in all-time stock gains.
Since adopting Bitcoin as a treasury asset in 2020, MicroStrategyâs stock is up⊠pic.twitter.com/cyXS0KODCD
â The Wolf Of All Streets (@scottmelker) October 25, 2024
Initially, the company developed software to analyze external and internal data to help decision-making, with IBM Cognos, Oracle Corporationâs BI Platform, and SAP AG Business objects as its primary competitors. However, in August 2020, the company changed its business model to focus on Bitcoin. The company has raised $4.25 billion from its equity offerings, the foundation for growing its Bitcoin holdings.
MicroStrategyâs Bitcoin Plan Has Its Costs, Too
As part of its Bitcoin plan, it aims to buy BTC at every opportunity. For the most part, Saylorâs strategy was a hit. However, the business plan to focus on Bitcoin came at a cost, and Saylor earned a few detractors and critics along the way.
For example, the company has expanded its convertible note offering to raise funds to buy more Bitcoin. However, the bulk of these notes do not mature until 2032. Some market observers also say that MicroStrategy is in a difficult situation, especially during market downturns. Since the company relies on Bitcoin, the companyâs future is dependent on cryptoâs extreme volatility. Although most criticisms are valid, Michael Saylor remains defiant and has since doubled its BTC investments.
Hey @SatyaNadella, if you want to make the next trillion dollars for $MSFT shareholders, call me. pic.twitter.com/NPnVvL7Wmj
â Michael SaylorâĄïž (@saylor) October 25, 2024
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Next Target For MicroStrategy Is $245
Market observers are now bullish on Saylorâs company. According to Mark Palmer, the companyâs stock has boasted a 17.8% yield since starting its Bitcoin strategy. Palmer and the other analysts now target $245 to address this sudden surge and bullish sentiment. Palmer adds that the companyâs share price has increased by 1,600% in the last four years, and more gains are possible.
It also helps that Michael Saylor has remained steadfast in his vision and passion for Bitcoin. In a recent Twitter/X post, MicroStrategyâs executive chairman hinted at the companyâs next move and made a pitch to Microsoftâs Satya Nadella.
Featured image from Dall.E, chart from TradingView