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WallStreet Forex Robot 3.0
crypto.news 2025-01-14 05:18:42

Wall street analyst predicts another 20% jump for MicroStrategy stock

Wall Street sees a potential 20% upside in MicroStrategy stock, citing its crypto-driven strategy. As reported by Seek Alpha on Jan. 13, Brett Knoblauch , who is the Head of Crypto and Digital Assets Research at Cantor Fitzgerald, said that he believes the MicroStrategy (MSTR) stocks would reach $613. Currently, the average price of MSTR on Wall Street sits at $518. If MSTR reaches $613, its stock prices would boost up roughly 20%. https://twitter.com/btc_overflow/status/1878835877193150535 Knoblauch predicts the uptick in the shares for MSTR as the firm has “developed a capital markets flywheel that allows it to accretively add bitcoin on a per share basis”, he wrote in a note. He also credits Bitcoin’s ( BTC ) post-U.S. election surge as a factor which buoyed MSTR, which is why the company raised about 18 billion dollars in capital in November and December of 2024, Cantor adds. You might also like: 3 potential catalysts to reverse crashing Bitcoin and altcoin prices The expert also calculated that MicroStrategy can issue $6.7 billion of equity, $2 billion preferred , $18 billion of debt and another 287K BTC to support his prediction. MicroStrategy is expected to continue to enjoy a yield greater than 10% on Bitcoin until 2025- this could mean an additional $400 million for the U.S. treasury through MicroStrategy, believes Knoblauch. “Ultimately, we are expecting 2025 to be another year where MSTR delivers a BTC yield above 10%, which would suggest treasury operations profits of more than $4B.” Brett Knoblauch MicroStrategy’s “21/21” plan, wherein the firm wants to accumulate $42 billion worth of BTC over the next three years, has already been set in motion. The corporate giant started buying BTC since Aug. 2020 where it acquired 21,454 BTC for approximately $250 million at an average price of about $11,653 per BTC. The firm’s most recent purchase was made yesterday, on Jan 13, where it bought around 2,530 BTC for $243 million, further fueling the market optimism. As of today, MicroStrategy has 450K BTC in its portfolio. In the past 24 hours, MSTR’s price has surged 0.49% to $328.40 , whereas BTC’s price has shot up +0.43% to $94,932, a close alignment in terms of percentage gains. This similarity comes from MicroStrategy’s strong correlation with the price of BTC since the company’s strategy is primarily based on its BTC ownership and acquisitions, and its stock is, therefore, sensitive to fluctuations in the value of BTC. Read more: Bitcoin a bubble unless broader uses emerge: Cliff Asness

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