MicroStrategy’s Bitcoin Holdings Continue to Drive Stock Performance
MicroStrategy (MSTR) founder and chairman, Michael Saylor, has been enjoying the holiday season all year long as the company’s bitcoin holdings have outperformed in 2023. The leading cryptocurrency has seen a 155% increase this year, with a 56% gain in the last 3 months alone. Canaccord analyst Joseph Vafi believes that the anticipation of US spot BTC ETF approvals in January has been a major driver of bitcoin’s recent gains.
In the meantime, MicroStrategy has been aggressively purchasing bitcoins, with a recent disclosure of buying 14,620 bitcoins in December at an average price of $42,110 each. This brings the company’s total BTC stack to 189,150, with an overall average acquisition price of ~$31,200 per bitcoin. Vafi notes that investors looking to get exposure to bitcoin can simply purchase MSTR stock, which has seen a phenomenal 346% increase this year.
The company’s software business, which is sticky, highly recurring, and cash flow rich, represents less than 15% of the overall enterprise value, with the majority now attributed to its bitcoin holdings.
Due to the ongoing price appreciation of BTC and the company’s continued additions to its HODL, Vafi has raised his price target for MSTR from $670 to $791, representing a potential 25% gain from current levels. Only two other analysts have provided reviews for MSTR in the past 3 months, both of which are also bullish on the stock.
MicroStrategy’s bitcoin holdings continue to be the main driver of the company’s stock performance.
