If we can believe the analysts of the investment bank Canaccord Genuity, the shares of the large MicroStrategy can still rise considerably from the current price of $ 1,593. While it previously had a price target of $975 for the company that owns more than 200,000 bitcoin, this has now been increased to $1,810.
The status of the share remains at “buy” for Canaccord.
MicroStrategy’s Bitcoin Success
So far, MicroStrategy’s choice in August 2020 to invest everything they have in bitcoin has been a good one. On paper, the company made billions in profits on its investments in bitcoin and increased this last week.
It raised $800 billion in capital through convertible bonds and invested the entire amount in bitcoin. That gave MicroStrategy 12,000 extra bitcoin, which it managed to buy at an average price of $68,500.
“This new expansion of MicroStrategy is a bit of a positive surprise for us, due to the competition from ETFs,” Conaccord writes in its research report on the stock.
According to Conaccord, it is special that MicroStrategy does not yet have any competition in its strategy. Despite the enormous success, no company has dared to pull off the same trick. This may have to do with the fact that MicroStrategy is now really a brand, which makes it difficult to follow the company.
613% up in 1 year
MicroStrategy shares today stand at $1,593, marking an increase of $1,370 compared to one year ago. This means that the bitcoin company’s share has risen by 613.99 percent in the past year.
This means that MicroStrategy performs a lot better than bitcoin. The digital currency managed to achieve an increase of 197.95 percent over the same period. That is of course also impressive, but it pales in comparison to the performance of MicroStrategy.
This does not alter the fact that an investment in MicroStrategy naturally entails additional risk.
Source: https://bitcoinmagazine.nl/nieuws/investeringsbank-aandeel-bitcoinbedrijf-microstrategy-kan-naar-1-810-stijgen
