MicroStrategy’s massive run isn’t over yet, according to Mizuho. The firm initiated the stock with an outperform rating and $515 price target, indicating shares could climb an additional 53.5% from Tuesday’s close. MicroStrategy, often seen as a proxy for the price of bitcoin, benefitted from the postelection bitcoin rally and has surged more than 550% over the past 12 months. The stock, which joined the Nasdaq-100 index in December, is up nearly 16% so far this year. MSTR 1Y mountain MicroStrategy stock performance. The company’s strategy of using proceeds from debt and equity issuance to buy bitcoin, with the goal of growing its bitcoin holdings per diluted share, is a “lever for the believer,” analyst Dan Dolev wrote in a Wednesday note to clients. “Anticipation that MSTR will continue buying bitcoin, coupled with expectation of bitcoin price appreciation, grants MSTR a premium (currently ~75%) to the underlying value of its bitcoin holdings,” Dolev said. “While bitcoin itself lacks intrinsic value, rising global adoption, slowing rate of bitcoin supply growth, and favorable political environment support price appreciation.” Looking ahead, the analyst expects bitcoin to grow by at a compound annual growth rate ranging between 25% to 30% through 2027, although likely with extreme volatility. He said that growing enthusiasm around the finite number of bitcoins and President Donald Trump’s positive stance on digital assets are catalysts for the price of bitcoin to go higher. Bitcoin was the top-performing asset class in 2024, gaining about 125%. Prices are higher since the start of the year. Dolev added that MicroStrategy’s corporate structure makes it even more attractive, as the company can issue convertible bonds and equity at a valuation that results in the immediate ability to increase its bitcoin holdings. Shares rose about 1% in the premarket following the call. Analysts generally are bullish on the stock, with six of the eight who cover it rating it a buy or strong buy, per LSEG.
