MicroStrategy may extend surge as investors embrace bitcoin strategy, says Bernstein
The company's stock has more than doubled this year, while bitcoin has gained more than 50%, fueled by the U.S. securities regulator's January approval of exchange-traded funds (ETFs) tied to the spot price of the cryptocurrency.
The brokerage on Thursday set a Street-high target of $2,890, compared to the stock's last close of $1,483.88, as MicroStrategy has become a popular proxy to gain exposure to bitcoin, especially among investors looking to avoid holding the cryptocurrency directly because of regulatory or other concerns.
The company held 214,400 bitcoins as of April 26, worth nearly $14.3 billion, based on Thursday's price.
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View Details» «MicroStrategy's founder-chairman, Michael Saylor, has positioned himself to be synonymous with brand bitcoin,» the analysts wrote, lauding the transformation «from a small software company to one of the largest bitcoin holding companies.»
Some analysts have warned that the spot bitcoin ETFs could chip away market share from companies such as MicroStrategy. But the «active» strategy employed by the
