MicroStrategy Shares Set for 30% Gains if Bitcoin Climbs to $150,000 by End of 2025: Analyst

The stock could reach $2,150 per share if MicroStrategy sustains the BTC buying spree started by founder Michael Saylor in 2020, according to Benchmark fintech analyst Mark Palmer.

Shares of business intelligence firm MicroStrategy (NASDAQ:MSTR) could rally 30% to reach $2,150 each by the end of 2025 if the company continues buying Bitcoin (BTC) and the cryptocurrency climbs to $150,000, an analyst said.

The stock currently trades at around $1,450.

MicroStrategy began buying BTC in 2020 under the leadership of founder Michael Saylor.

The company's stock has outperformed both BTC and the broader stock market since then.

MicroStrategy is now valued at around $33 billion, making it one of the most valuable companies in the cryptocurrency space.

The company's stock is also a popular choice among retail traders, who have helped drive up its price in recent years.

However, some analysts have warned that MicroStrategy's stock is overvalued and could be due for a correction.

The company's stock has also come under pressure in recent months due to concerns about its slowing enterprise software revenue and虧損.

MicroStrategy also said on its Aug. 1 earnings call that it would now be tracking a new performance metric called “Bitcoin yield,” which calculates the ratio of BTC holdings to outstanding shares and essentially sets BTC-per-share as a lodestar for corporate performance.

This metric is designed to highlight the company's strategy of using its enterprise software revenue to buy and hold BTC, and to "demonstrate the efficacy of its bitcoin acquisition strategy and its use of intelligent leverage,” Benchmark fintech analyst Mark Palmer told Cointelegraph in an email on Aug. 2.

“Our valuation assumes that [MicroStrategy] will continue to aggressively accumulate Bitcoin during the next 1.5 years and that Bitcoin’s price will reach $150,000 by the end of 2025,” Palmer said, regarding the firm's buy rating on the stock.

“This approach has had plenty of detractors, but notably, management has responded to criticism by pointing to the scoreboard: since the company adopted this approach on August 10, 2020, the company's stock has appreciated by 1,206%,” the report said, adding that MicroStrategy greatly outperformed both BTC and stocks during that time frame.

The company's stock is up over 1,200% since Aug. 10, 2020, while BTC is up around 345% and the S&P 500 index is up about 68%.

MicroStrategy's buy rating from Benchmark is “based on a sum-of-the-parts analysis that combines (1) our estimate of the year-end 2025 value of the company’s Bitcoin holdings and (2) our estimate of the year-end 2025 value of its enterprise software business,” Palmer said.

MicroStrategy shares fell about 10% in post-market trading after revealing a loss of $5.74 per share, as declining revenue from its core enterprise software business drove the company to a loss in the second quarter.