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MicroStrategy Rated 'Buy' by BTIG Partly on View Bitcoin Will Hit $95K by End of 2022
BTIG also praised the firm's core business.
BTIG began coverage of MicroStrategy, the business intelligence firm/bitcoin storehouse, with a "buy" rating Wednesday, saying the company's adoption of the cryptocurrency as its primary treasury reserve asset represents a "rational action" to protect the firm's value in the long run.
STORY CONTINUES BELOW
- BTIG, which also praised MicroStrategy's core business, said that it views bitcoin as a form of digital gold and that buying MicroStrategy (Nasdaq: MSTR) provides investors a way to gain exposure to the virtual currency.
- MicroStrategy's strategy lets it benefit from the rise of bitcoin driven by its adoption by institutional investors worried about inflation.
- BTIG said its valuation is partly based on an assumption that the price of bitcoin will rise to $95,000 by the end of 2022 and on MicroStrategy's shift from a product license model to a cloud-first, subscription one.
- MicroStrategy has reported owning 91,326 bitcoin it bought for $2.21 billion, BTIG noted, with that stash worth now more than $5 billion. Given that MicroStrategy shares are just over half where they had reached in early February, BTIG says the current price is an attractive entry point.
- BTIG said it has an $850 per share price target on MicroStrategy's shares. No time frame was provided.
- Shares of MicroStrategy closed Wednesday at $703.56, up $24.76 or 3.65%. On Feb. 8, they reached an all-time high of $1,315.
Kevin Reynolds
Kevin Reynolds was the editor-in-chief at CoinDesk. Prior to joining the company in mid-2020, Reynolds spent 23 years at Bloomberg, where he won two CEO awards for moving the needle for the entire company and established himself as one of the world's leading experts in real-time financial news. In addition to having done almost every job in the newsroom, Reynolds built, scaled and ran products for every asset class, including First Word, a 250-person global news/analysis service for professional clients, as well as Bloomberg's Speed Desk and the training program that all Bloomberg News hires worldwide are required to take. He also turned around several other operations, including the company's flash headlines desk and was instrumental in the turnaround of Bloomberg's BGOV unit. He shares a patent for a content management system he helped design, is a Certified Scrum Master, and a veteran of the U.S. Marine Corps. He owns bitcoin, ether, polygon and solana.
