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Michael Saylor’s MicroStrategy is back in the news, with its shares trading at a 25-year high. Latest TradingView data shows that MicroStrategy (MSTR) reached $235.89 in Thursday’s session. The stock price rose more than 7% on October 25. MicroStrategy’s price action last Thursday continued its 6-week rally and came ahead of its scheduled third-quarter earnings report.
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This week’s stock performance reflects the company’s continued growth over the past few years. MicroStrategy has outperformed most of its S&P 500 peers and outpaced Microsoft’s growth since 1999. According to observers, MicroStrategy is bullish, with market analysts listing $245 as their next target for the stock.
MicroStrategy continues its focus on Bitcoin
MicroStrategy, a Virginia-based bitcoin development company, is currently the largest bitcoin holder in the world, with 252,222 bitcoins. With Bitcoin’s current price of $67,392, the company has assets worth more than $17 billion.
MicroStrategy stock hits new highs
MicroStrategy (MSTR) stock rose more than 7% to a 25-year high of $236, with a current market cap of $47 billion, surpassing Microsoft in all-time stock gains.
Since adopting Bitcoin as a treasury asset in 2020, MicroStrategy stock has soared… pic.twitter.com/cyXS0KODCD
– Wolf of All Streets (scottmelker) October 25, 2024
Initially, the company developed software to analyze external and internal data to aid decision making, with IBM Cognos, Oracle’s BI platform and SAP AG Business Objects as its main competitors. However, in August 2020, the company changed its business model to focus on Bitcoin. The company raised $4.25 billion from its equity offerings, the basis for growing its Bitcoin holdings.
MicroStrategy’s Bitcoin plan has its costs, too
As part of her Bitcoin plan, she aims to buy Bitcoin at every opportunity. For the most part, Saylor’s strategy was successful. However, the business plan to focus on Bitcoin came at a cost, and Saylor has earned some detractors and critics along the way.
For example, the company expanded its offering of convertible securities to raise funds to buy more Bitcoin. However, the bulk of these bonds don’t mature until 2032. Some market watchers also say MicroStrategy is in a tough spot, especially during market downturns. Since the company is based on Bitcoin, the company’s future depends on the extreme volatility of the cryptocurrency. Although most of the criticisms are valid, Michael Saylor remains defiant and has since doubled his investments in Bitcoin.
Hey @Satya Nadellaif you want to make the next trillion dollars for it $MSFT Shareholders, contact me. pic.twitter.com/NPnVvL7Wmj
– Michael Saylor⚡️ (@saylor) October 25, 2024
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MicroStrategy’s next target is $245
Market watchers are now bullish on Saylor. According to Mark Palmer, the company’s stock has returned 17.8% since the start of the Bitcoin strategy. Ballmer and other analysts are now targeting $245 to address this surge and bullish sentiment. Palmer adds that the company’s stock price has risen by 1,600% in the past four years, and further gains are possible.
It also helps that Michael Saylor remains consistent in his vision and passion for Bitcoin. In a recent post on Twitter/X, MicroStrategy’s CEO hinted at what’s next for the company and made a pitch to Microsoft’s Satya Nadella.
Featured image from Dall.E, chart from TradingView