MicroStrategy Inc. MSTR experienced a notable 4.44% increase in its share price during pre-market trading on Friday as per Benzinga Pro. This rise aligns with Bitcoin‘s BTC/USD recovery from its recent dip.
What Happened: Earlier this week, Bitcoin had dropped to $92,000 but was trading at $96,596.96 by 5:26 a.m. ET. The cryptocurrency’s resurgence seems to have positively impacted MicroStrategy’s stock performance.
MicroStrategy’s consensus price target stands at $449.5, based on assessments from 12 analysts. The highest target of $690 was set by BTIG on December 11, 2023, while the lowest, $140, was issued by Jefferies on Nov. 10, 2022.
As per Benzinga Pro, the consensus price target for MSTR is $449.5 based on the ratings of 12 analysts. The most recent analyst ratings for MicroStrategy were provided by TD Cowen, Barclays, and Benchmark on Nov. 25. These ratings suggest an average price target of $563.33, indicating a potential upside of 38.72% for the company.
Why It Matters: MicroStrategy’s stock performance is closely tied to Bitcoin’s fluctuations due to its substantial investment in the cryptocurrency. The company’s strategy of acquiring and holding Bitcoin has been both praised and criticized. Recently, economist and market strategist Peter Schiff predicted potential bankruptcy for MicroStrategy due to its Bitcoin investment approach. In an interview with Kitco News, Schiff described MicroStrategy as a “great short” and suggested that the company’s strategy could ultimately lead to bankruptcy. Schiff’s comments highlight the risks associated with MicroStrategy’s heavy reliance on Bitcoin’s market performance.
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