MicroStrategy is looking to sell its Class A shares to raise $2 billion to buy more Bitcoin
MicroStrategy is seeking to sell its Class A shares to raise up to $2 billion to purchase more Bitcoin and for general corporate purposes.In regulatory filings filed with the U.S. SEC, MicroStrategy did not disclose a timetable for stock sales or how much proceeds would be used to purchase Bitcoin.Earlier in June this year, MicroStrategy announced the issuance of $500 million unsecured senior convertible notes to purchase more Bitcoin, and one day later raised the issue price to $700 million.
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Benchmark raises MicroStrategy (MSTR) price target to $2,150
Despite MicroStrategy (MSTR) reporting lower than expected second quarter earnings, Wall Street broker Benchmark has still raised its target price for MSTR stock to $2,150 and given it the highest rating. (Current stock price is only $1,447)In a research report on Friday, Benchmark analyst Mark Palmer wrote that since August 2020, when Bitcoin became its primary reserve asset, MSTR's stock price has risen by 1,206%. Since then, the stock's performance has sharply contrasted with Bitcoin (BTC), the S&P 500 index, and the Nasdaq index, which have risen by 442%, 64%, and 60%, respectively.The company reported a net loss of $102.6 million for the second quarter on Thursday, as its Bitcoin holdings suffered a depreciation loss of $180.1 million. The company currently holds 226,500 Bitcoins, with an average purchase price of $36,821.
Microstrategy Increases Bitcoin Holdings to 226,500 BTC Through Q2 Acquisitions
Microstrategy, listed on Nasdaq, purchased 12,222 bitcoins in the second quarter, bringing its total holdings to 226,500 BTC. CEO Phong Le and CFO Andrew Kang expressed optimism about the future of bitcoin and emphasized the company's financial strategy. Despite a net loss, Microstrategy remains committed to its bitcoin strategy.
Since MicroStrategy adopted the Bitcoin strategy, BTC has risen 460%, far exceeding the performance of the S&P 500 and Nasdaq in the same period
Michael Saylor, co-founder of MicroStrategy, shared data on X showing that since August 10, 2020, when MicroStrategy adopted a Bitcoin strategy, BTC has risen by 460%, while the S&P 500 index has risen by 64%, the Nasdaq index has risen by 62%, gold has risen by 21%, silver has risen by 8%, and bonds have fallen by 19%.
Analysis: MicroStrategy’s BTC purchases offset German government selling pressure
Some analysts believe that the German government's massive sale of Bitcoin is the reason for the sluggish cryptocurrency market. In addition, traders are concerned that the stock market may have peaked and that the US fiscal situation is weakening. According to previous monitoring by the on-chain crypto analysis company Arkham, a wallet related to the German government transferred 6,500 BTC to exchanges on June 19th, worth $425 million at the time. The wallet holds nearly 50,000 BTC, reportedly seized from the pirated movie website Movie2k that has been operating since 2013. Data shows that these BTC were sent to Kraken, Bitstamp, and Coinbase. However, MicroStrategy disclosed that it has purchased an additional 11,931 BTC for $786 million, which offsets the selling pressure.
Michael Saylor: SEC will designate Ethereum as a security and reject spot ETF applications in the summer
Michael Saylor, the CEO and co-founder of MicroStrategy, believes that Ethereum will be classified as a security by the SEC this summer and that several asset management companies, including BlackRock, will have their related spot ETF applications rejected. Saylor made this prediction in a social media post during his speech at the MicroStrategy World 2024 conference on May 2. He further predicted that other cryptocurrencies "under the stack" will also receive unregistered names, including BNB, SOL, XRP, and ADA. Saylor asserts that only Bitcoin has received full institutional recognition and calls BTC a universal institutional-grade cryptographic asset, stating that there will not be another one.
Benchmark: MicroStrategy price target raised to $1,875 from $990
Broker Benchmark stated in a research report on Monday that MicroStrategy (MSTR) is particularly capable of benefiting from the Bitcoin halving around April 20, when the new supply of Bitcoin will be reduced by 50%. Benchmark raised MicroStrategy's target price from $990 to $1,875 and maintained its buy rating. The new price target is based on the assumption that Bitcoin will reach $150,000 by the end of 2025, higher than the previous target of $125,000.
US brokerage BTIG: Raise MicroStrategy stock target price from $780 to $1,800
According to CoinDesk, US brokerage firm BTIG stated in a research report that MicroStrategy has a good track record in creating value for shareholders, and reiterated its buy rating on the stock, raising its target price from $780 to $1,800.Analysts Andrew Harte and Thomas Smith wrote that MicroStrategy's stock price has risen 155% this year, mainly due to the 50% increase in Bitcoin prices, increasing financing, and the implied premium of MicroStrategy's Bitcoin holdings has increased from about 1.5 times last year to more than twice, among other factors.The report stated that in the sum-of-the-parts (SOTP) valuation analysis of the company, investors expressed support for a higher implied Bitcoin premium, and pointed out that although this premium has increased compared to historical levels, "investors have shown a willingness to invest based on their positive outlook on the premium."
Analyst: Bitcoin will rise to more than $90,000 in a bull market scenario, MicroStrategy stock price rises to $2,700
BTIG analysts say that due to a large bet on Bitcoin, MicroStrategy Inc.'s stock price has soared by 150%. With the surge in cryptocurrency, there is further room for MicroStrategy Inc.'s stock price to rise. Analyst Andrew Harte raised his target price to $1,800 on Friday, which means the stock could rise at least another 10% from recent trading.
