Canaccord Genuity has revised its price target for MicroStrategy (NASDAQ:MSTR) from $185 to $173 while maintaining a Buy rating on the stock.
The adjustment comes as the business intelligence company continues its aggressive Bitcoin (CRYPTO: BTC) acquisition strategy, which has seen it amass a significant cryptocurrency portfolio.
What Happened: According to Canaccord analyst Joseph Vafi, MicroStrategy has purchased over $1.1 billion in additional Bitcoin in just six weeks, bringing its total holdings to approximately 244,800 Bitcoin, valued at around $14.6 billion.
"MicroStrategy remains aggressive in building its BTC HODL," Vafi noted in his report. "Given MicroStrategy's aggressive acquisition of Bitcoin over the past few years, approximately $900 million left on its most recent shelf offering, and the accretive setup to acquire more Bitcoin using equity sales, we would expect to see the company remain active in its purchases."
The analyst highlighted MicroStrategy's newly introduced "Bitcoin Yield" metric, which measures growth in its Bitcoin holdings versus growth in share count.
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This metric stands at 17% year-to-date and 4.4% quarter-to-date, indicating accretive Bitcoin acquisitions. Vafi explained, "While MSTR's stock continues to trade at a material premium to its HODL, we attribute the Bitcoin Yield differential YTD v QTD to using proceeds from convertible notes earlier in the year to acquire more bitcoin even more accretively versus straight equity more recently."
Despite lowering the price target, Canaccord remains optimistic about MicroStrategy's strategy and the overall Bitcoin market.
The firm's valuation methodology takes into account a 20% one-year appreciation in Bitcoin price versus current spot rates, a 15% increase in value to MicroStrategy's software business, and the assumption that the current sum-of-the-parts premium remains intact.
Vafi also pointed to potential catalysts for Bitcoin's performance, stating, "We view the 2024 election cycle as a positive catalyst" for the cryptocurrency market.
What's Next: The upcoming Benzinga Future of Digital Assets event on Nov. 19 is expected to provide further insights into the strategies of companies heavily invested in cryptocurrencies.
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オーストラリアでは、moomooの投資商品及びサービスはMoomoo Securities Australia Limitedによって提供され、オーストラリア証券投資委員会（ASIC）の管理を受けております（AFSL No. 224663）。「金融サービスガイド」、「利用規約」、「プライバシーポリシー」などの詳細は、Moomoo Securities Australia Limitedのウェブサイトhttps://www.moomoo.com/auでご確認いただけます。
オーストラリアでは、moomooの投資商品及びサービスはMoomoo Securities Australia Limitedによって提供され、オーストラリア証券投資委員会（ASIC）の管理を受けております（AFSL No. 224663）。「金融サービスガイド」、「利用規約」、「プライバシーポリシー」などの詳細は、Moomoo Securities Australia Limitedのウェブサイトhttps://www.moomoo.com/auでご確認いただけます。
"MicroStrategy remains aggressive in building its BTC HODL," Vafi noted in his report. "Given MicroStrategy's aggressive acquisition of Bitcoin over the past few years, approximately $900 million left on its most recent shelf offering, and the accretive setup to acquire more Bitcoin using equity sales, we would expect to see the company remain active in its purchases."
「マイクロストラテジーはBTC HODLを積極的に推進し続けています。マイクロストラテジーは過去数年間にわたってビットコインを積極的に取得しており、最新の新株式公開後には約9000万ドルの資金を残しており、新たな株式販売を通じてさらにビットコインを購入するための受け皿を設定しています。同社の購入活動が活発であることを期待しています」とVafiは報告書で述べました。
