Canaccord Genuity analyst Joseph Vafi reiterated the Buy rating on MicroStrategy Inc. MSTR on Friday, raising the price forecast from $409 to $464.
This week, the company reported first-quarter revenue of $111.07 million, falling slightly below analyst expectations, while posting a significant adjusted loss of $16.53 per share.
Despite this, MicroStrategy’s Bitcoin holdings, now totaling 553,555 BTC, have helped reinforce investor confidence. Year-to-date, the firm has acquired over 15,000 Bitcoin at an average price of $92,737, funded primarily through its ongoing stock offerings.
Vafi noted that MicroStrategy has been the top-performing S&P 500 stock in recent years and continues to aggressively pursue its Bitcoin-focused treasury strategy.
In Q1, the company raised funds through two successful preferred stock IPOs and a $2 billion zero-coupon convertible note with a 35% premium, enabling it to purchase an additional 106,000 bitcoins for around $9.9 billion year-to-date, the analyst said.
Vafi noted that despite a challenging Q1 for risk equities, MicroStrategy’s equity premium saw a modest rise, which is significant.
The analyst also observed that Bitcoin has started to behave independently from traditional risk assets like growth stocks.
The analyst pointed out that the regulatory environment for digital assets appears to be becoming more favorable heading into late 2025 and early 2026.
While macroeconomic uncertainty remains, the outlook for Bitcoin and digital assets is improving, supported by the potential for clearer U.S. regulation.
The analyst also pointed out that more global companies are adopting MicroStrategy’s Bitcoin strategy, which the firm views positively.
Price Action: MSTR shares are trading higher by 3.09% to $393.02 at last check Friday.
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