MicroStrategy's (MSTR) bitcoin (btc) play is attracting attention as Canaccord recently called its “smart leverage strategy” ideal for investors to gain exposure to btc.
MicroStrategy stocks Ideal for Gaining bitcoin Exposure
in an investigation report Posted yesterday, financial services firm Canaccord reiterated that buying MicroStrategy shares remains one of the best ways for investors to gain exposure to btc.
The firm acknowledged MicroStrategy's overall bitcoin acquisition strategy, including its latest 'Plan 21/21', which involves a capital inflow of $42 billion divided equally between equity offerings in At The Market (ATM) and fixed income securities.
The above amount will fund future btc purchases and continue to bolster MicroStrategy's reserves. It will also increase MicroStrategy's btc yield to an average target of 8% over the next three years.
Notably, Canaccord has raised MSTR's price target from $173 to $300, an increase of approximately 73%, while maintaining a “buy” rating on the stock. MSTR is trading at $238.55 at the time of publication, down 2.43% during trading hours.
Canaccord noted that since MicroStrategy adopted its signature bitcoin accumulation strategy in 2020, it has outperformed both the stock market and btc. The report says:
If share price is the true test for any business model, then MSTR is hard to beat in our opinion. MicroStrategy's leverage strategy offers the potential for additional spot premium to reemerge in MSTR stock.
Furthermore, the financial services company showed optimism towards the price of btc, stating that the leading digital asset has benefited from the US Securities and Exchange Commission's (SEC) approval of exchange-traded funds (ETFs). ) based on bitcoin.
The company also emphasized the impact of the supply shortage created by bitcoin's halving of the digital asset's price. Notably, btc halved on April 20, 2024. At that time, it was trading slightly above $64,000.
While halving has historically acted as a bullish catalyst, causing extraordinary price appreciation, its effects typically materialize within 6 to 12 months. That said, some cryptanalysts and research firms have displayed skepticism about the impact of this year's halving.
More companies follow in MicroStrategy's footsteps
An increasing number of companies around the world are replicating MicroStrategy's bitcoin genius. For example, recentlyThe Japanese company Metaplanet concluded a share sale to raise $68 million in btc purchases.
In September 2024, Nasdaq-listed Semler Scientific revealed a purchase of 83 btc worth about $5 million. The acquisition increased the company's total btc reserves to 1,012 btc.
Similarly, Samara Asset Group, a German investment firm, recently shared plans to raise close to $33 million to increase its btc holdings. btc is trading at $69,678 at the time of this publication, down 1.4% in the last 24 hours.
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