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Michael Saylor’s MicroStrategy is back in the news, with its stock trading at a 25-year high. The latest TradingView data shows that MicroStrategy (MSTR) reached $235.89 during the Thursday session. The stock price rose more than 7% on October 25. MicroStrategy’s price action last Thursday continued its 6-week rally and came ahead of the planned Q3 earnings report.
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This week’s stock performance reflected the company’s consistent growth over the past few years. MicroStrategy has outperformed its peers in the S&P 500 index and outpaced Microsoft’s growth since 1999. According to observers, MicroStrategy is bullish, market analysts are counting $245 as the next target for the stock.
MicroStrategy Continues Its Bitcoin Focus
MicroStrategy, a Bitcoin development company based in Virginia, is currently the world’s largest holding of Bitcoin, with 252,222 BTC. At Bitcoin’s current price of $67,392, the company holds more than $17 billion in assets.
MicroStrategy Stock Hits New Highs
MicroStrategy (MSTR) stock rose as much as 7% to a 25-year high of $236, with a current market cap of $47 billion, overtaking Microsoft for all-time stock gain.
Since the adoption of Bitcoin as a treasury asset in 2020, MicroStrategy’s stock is high… pic.twitter.com/cyXS0KODCD
– Wolf of All Streets (@scottmelker) October 25, 2024
Initially, the company developed external and internal data analysis software to aid decision-making, with IBM Cognos, Oracle Corporation’s BI Platform, and SAP AG Business Objects as its main competitors. However, in August 2020, the company changed its business model to focus on Bitcoin. The company raised $4.25 billion in equity capital, the basis for increasing its holdings of Bitcoin.
MicroStrategy’s Bitcoin Plan Has Its Costs, Too
As part of its Bitcoin program, it aims to buy BTC at every opportunity. For the most part, Saylor’s strategy was a hit. However, the business plan to focus on Bitcoin came at a cost, and Saylor gained a few detractors and critics along the way.
For example, the company expanded its convertible note offering to raise funds to buy more Bitcoin. However, most of these notes do not mature until 2032. Some market watchers also say that MicroStrategy is in a difficult position, especially during market downturns. Since the company relies on Bitcoin, the future of the company depends on the extreme volatility of the crypto. While many criticisms apply, Michael Saylor remains defiant and has since doubled his BTC investment.
Hello @SatyaNadellaif you want to make the next trillion dollars $MSFT shareholders, call me. pic.twitter.com/NPnVvL7Wmj
— Michael Saylor⚡️ (@saylor) October 25, 2024
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MicroStrategy’s Next Target is $245
Market observers have now turned on Saylor’s company. According to Mark Palmer, the company’s stock has boasted a 17.8% yield since it launched its Bitcoin strategy. Palmer and other analysts are now targeting $245 to deal with this sudden breakout and bullish sentiment. Palmer added that the company’s stock price has risen 1,600% in the past four years, and further gains are possible.
It also helps that Michael Saylor remains steadfast in his vision and passion for Bitcoin. In a recent Twitter/X post, MicroStrategy’s executive chairman commented on the company’s next move and made a proposal to Microsoft’s Satya Nadella.
Featured image from Dall.E, chart from TradingView