Wall street analyst predicts another 20% jump for MicroStrategy stock

by

Wall Street sees a potential 20% upside in MicroStrategy stock, citing its crypto-driven strategy.

According to a report by Seek Alpha on January 13th, Brett Knoblauch, the Chief of Crypto and Digital Assets Research at Cantor Fitzgerald, expressed his opinion that MicroStrategy (MSTR) shares could potentially rise to $613. At present, the typical price for MSTR stocks on Wall Street is $518. This implies that if the stock price indeed reaches $613, it would increase by approximately 20%.

Just now, analysts at Cantor Fitzgerald have raised their projected price for MicroStrategy Inc. ($MSTR) from $518 to an optimistic $613. 👀

While it’s becoming a bit of a trope to say that Trump associates have inside information, the bullish sentiment certainly holds true here.

— Bitcoin Overflow (@btc_overflow) January 13, 2025

According to Knoblauch, there’s going to be an increase in MSTR’s stock because the company has created a mechanism for consistently and profitably adding Bitcoin, one share at a time, as he stated in his note.

Additionally, he attributes Bitcoin’s rise following the U.S. election in 2024 as one reason for the significant increase in MSTR’s capital. As a result, the company was able to secure approximately $18 billion in funding between November and December of that year, according to Cantor.

Additionally, the expert estimated that MicroStrategy could potentially release approximately $6.7 billion in shares (equity), $2 billion in preferred stock, borrow around $18 billion, and acquire an additional 287,000 Bitcoins to back up his forecast.

According to Knoblauch’s belief, MicroStrategy is projected to keep earning returns over 10% from Bitcoin investments up until 2025. This potentially adds an extra $400 million to the U.S. treasury through MicroStrategy’s operations.

In essence, the projection is that MSTR will generate a Bitcoin return of over 10% in 2025, implying total treasury profits exceeding $4 billion.

We anticipate 2025 to be a year where Mastercard (MSTR) yields more than 10% from Bitcoin investments. This expectation implies that the company’s treasury operations will earn over $4 billion in profits.

Brett Knoblauch

MicroStrategy’s “21/21” strategy, which aims to amass a total of $42 billion in Bitcoin over the next three years, is now underway. This corporate titan began purchasing Bitcoin as early as August 2020, when it procured 21,454 Bitcoins for approximately $250 million, with an average price of around $11,653 per Bitcoin.

Yesterday, January 13th, the company made its latest Bitcoin acquisition, spending approximately $243 million to acquire around 2,530 BTC. This purchase adds to the market’s positive sentiment. Currently, MicroStrategy holds a total of 450,000 Bitcoins in its investment portfolio.

Over the last day, MSTR’s price has climbed by 0.49% to reach $328.40. On the other hand, BTC’s price has also increased by 0.43%, amounting to $94,932. Both have shown a considerable percentage increase, with MSTR mirroring BTC’s price movements due to its close relationship with Bitcoin, as the company’s strategy revolves around its ownership and purchases of Bitcoin. As a result, MSTR’s stock tends to react to changes in Bitcoin’s value.

Read More

2025-01-14 08:22