Benchmark gives MicroStrategy (MSTR) a buy rating with a target price of $990.

Investment bank Benchmark has given a buy rating and a target price of $990 to the software development company MicroStrategy, MSTR. MicroStrategy's stock price surged over 9% yesterday to $871.8, reaching a new high since April 2021, driven by the significant increase in Bitcoin.

MicroStrategy Rated Buy, Target Price $990

According to a report by CoinDesk, investment bank Benchmark stated in a research report that MicroStrategy has a unique business model based on acquiring and holding Bitcoin (BTC), with Bitcoin accounting for a large portion of the software company's valuation. Benchmark has given the stock a Buy rating with a target price of $990.

Analyst Mark Palmer noted:

The launch of multiple spot Bitcoin ETFs has led to an increase in Bitcoin demand, coupled with the supply slowdown caused by the halving, which could drive a significant increase in cryptocurrency prices in the coming years. When Bitcoin halves, miners' rewards will decrease by 50%, reducing the token supply in the market.

Their fundamental assumption is that the price of Bitcoin will reach $125,000 by the end of 2025.

"Bitcoin Development Company" MicroStrategy Rises with BTC Surge

MicroStrategy announced its Treasury Reserve Policy in September 2020, adopting Bitcoin as the company's primary reserve asset policy. In addition to cash flow generated by its core business, it continues to buy Bitcoin through debt and equity financing transactions.

Since purchasing Bitcoin, its stock price (blue line) has closely followed the trend of Bitcoin (orange line), rising by 308% compared to Bitcoin's 282% increase during the same period.

Fueled by Bitcoin's surge, MicroStrategy's stock price rose over 9% yesterday to $871.8, reaching a new high since April 2021.

Bitcoin takes me higher! What is MicroStrategy's Bitcoin strategy?

MicroStrategy recently announced another purchase of Bitcoin at an average price of over $50,000. With a holding of 193,000 Bitcoins, the value of its holdings exceeds $10 billion, with nearly $5 billion in unrealized gains.

MicroStrategy buys an additional 3,000 Bitcoins, pushing the holding value over $10 billion, with unrealized gains close to $5 billion

As Bitcoin has surged in recent months, MicroStrategy founder Michael Saylor also stated that the company will undergo a brand reshaping, positioning itself as a "Bitcoin Development Company." He once again recommended that investors buy MicroStrategy stock rather than Bitcoin, as MicroStrategy has also capitalized on the AI trend!

MicroStrategy rebrands as "Bitcoin Development Company," suggesting to buy MicroStrategy stock over BTC