MicroStrategy Inc. (NASDAQ:MSTR) can benefit from the rising Bitcoin (CRYPTO: BTC) prices, and faster growth in its holdings as compared to share dilution, says Mizuho as it describes the company’s play on the cryptocurrency as the “Lever for the Believer” in its note dated Jan. 29.
The MSTR Analysts: A group of analysts at Mizuho including its managing director, Dan Dolev, vice president, Sean Kennedy along with associates Ryan Coyne and Nicholas Lucas, initiated coverage on MicroStrategy with an ‘outperform’ rating and price target of $515, implying a 53.3% upside from Tuesday’s close of $335.93 apiece.
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Analyst Takeaways: Highlighting MicroStrategy’s strategy of using proceeds from debt and equity offerings to acquire more bitcoin, the analysts in the research note said that MSTR enjoys a premium of approximately 75% over the underlying value of its bitcoin holdings.
The Michael Saylor-led company leverages this premium to issue convertible bonds and equity. This allows MicroStrategy to grow its …
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