MicroStrategy Sees 20% Stock Gain, Wall Street Analysts Say
Date: 2025-01-14 Author: Henry Casey Categories: BUSINESS
According to information published by Seek Alpha on January 13, Brett Knoblauch, head of crypto and digital asset research at Cantor Fitzgerald, predicts that MicroStrategy (MSTR) shares could rise to $613. They currently trade at an average price of $518 on Wall Street, suggesting a potential 20% gain.
Knoblauch explains his forecast by the company’s capital market model that allows it to efficiently increase the amount of Bitcoin per share. In his research note, he also noted that the stock’s growth is supported by the recent surge in Bitcoin prices following the US election.
The company raised about $18 billion in capital in November and December 2024, which, according to the expert, strengthens its position.
In addition, the analyst estimates that MicroStrategy has the ability to raise $6.7 billion in equity, $2 billion in preferred stock, $18 billion in debt, and add another 287,000 BTC to its portfolio.
Knoblauch believes that the company will continue to earn returns above 10% on its Bitcoin holdings through 2025. This could generate an additional $400 million in profits for the U.S. Treasury through MicroStrategy.
“We expect 2025 to be another strong year for MSTR, with returns above 10% on BTC, generating over $4 billion in Treasury profits.”
Brett Knoblauch
MicroStrategy is actively pursuing its “21/21” strategy, which aims to accumulate $42 billion in Bitcoin over three years. The company began acquiring BTC back in August 2020, purchasing 21,454 BTC for $250 million at an average price of about $11,653 per coin.
The latest purchase was yesterday, January 13, when the company purchased about 2,530 BTC for $243 million, adding confidence to the stock's prospects. MicroStrategy currently holds 450,000 BTC.
Over the past 24 hours, MSTR shares have risen 0.49% to $328.40, while Bitcoin has risen 0.43% to $94,932. This similarity in percentage changes is due to the strong correlation between the BTC price and MicroStrategy's strategy of accumulating the cryptocurrency.
