Cantor Fitzgerald has recently raised the price target for MicroStrategy's stock from $518 to $613, citing the company's aggressive Bitcoin acquisition strategy. Co-founded by Michael Saylor, MicroStrategy continues to lead in corporate Bitcoin holdings.
MicroStrategy’s Current Bitcoin Holdings
On January 12, 2025, the company acquired an additional 2,530 BTC for $243 million at an average price of $95,972 per Bitcoin. MicroStrategy now holds 450,000 BTC, purchased at an average price of $62,691 per Bitcoin. The total investment is valued at $28.2 billion.
Cantor Fitzgerald’s Optimism: Key Drivers
Brett Knoblauch from Cantor Fitzgerald pointed out that MicroStrategy could raise substantial funds to expand its Bitcoin portfolio. The company could issue $6.7 billion in equity, raise $2 billion through preferred stock, and secure $18 billion in debt, enabling the purchase of approximately 287,000 BTC. This move solidifies MicroStrategy’s position as the largest corporate Bitcoin holder.
Market Implications of MicroStrategy’s Strategy
MicroStrategy's aggressive accumulation supports Bitcoin’s market perception as a premier asset for institutional adoption. The increased stock price target reflects growing optimism about MicroStrategy's business model and its alignment with Bitcoin's rising value. Such strategies could serve as a precedent for other companies, encouraging the integration of Bitcoin into corporate strategies.
Cantor Fitzgerald’s decision to raise MicroStrategy's price target to $613 highlights confidence in Bitcoin's role in the company's strategy. With the potential to acquire an additional 287,000 BTC, MicroStrategy remains at the forefront of institutional Bitcoin adoption. However, investors must consider the risks associated with Bitcoin’s volatility and capital-intensive strategy.
