There are Bitcoin (BTC-USD) bulls, and then there is MicroStrategy (NASDAQ:MSTR). The analytics and business intelligence solutions provider seems to have made hoarding as much Bitcoin as possible its top priority in recent times.
The Michael Saylor-led company is offering convertible notes worth $700 million, planning to use the net proceeds from the effort to acquire additional Bitcoin (and for general corporate purposes). MSTR held nearly 193,000 BTC at last check. According to CoinDesk, this stash was worth over $13 billion considering BTC’s $67,500 price level. This hoard makes MSTR the largest corporate holder of BTC globally.
Bitcoin has rallied by nearly 196% over the past year. In comparison, MSTR’s stock price has skyrocketed by nearly 343% during this period. Oddly enough, this means holding MSTR would have worked out better for crypto enthusiasts rather than stocking up on BTC itself.
Is MSTR a Good Stock to Buy?
While the Street has a Strong Buy consensus rating on MSTR, an average price target of $875 for the stock indicates a potential downside of 16.7%. Still, the upcoming halving event could act as a potential price driver for both BTC and MSTR. Historically, the price of BTC has rallied following a halving. Consequently, investor sentiment in MSTR stock remains buoyant. Shares of the company are already up by nearly 7% in the early session today.
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