Wall Street analysts are firmly behind the aggressive escalation of the Bitcoin (BTC) Acquisition Strategy (MSTR) after announcing plans to double the company’s capital ambitions.
“The number of companies that have tried to replicate the strategy’s Bitcoin acquisition strategy continues to grow rapidly, but MSTR yesterday reminded us of the range of initial driving advantages and how the platform’s ability to accelerate accumulation has increased.”
Although MSTR is traded at more than twice the value of Bitcoin Holdings, Palmer says the level is “attractive” thanks to Chairman Michael Sayler and his team’s “experts the ability to generate shareholder value through their financial operations.”
In addition to reporting the results for the first quarter on Thursday evening, the strategy announced an expansion of its recent 21/21 plan. This totaled $84 billion by raising $42 billion through issuing common stock and debt (or securities like debt).
Meanwhile, TD Cowen’s Lance Vitanza acknowledges his updated strategic ambitions, calling it “probably offensive, but never quite a problem.” The company noted that its strategy has already raised $28.3 billion under its original 21/21 plan, and that the company’s significant $111 billion market capitalization and deep trading liquidity have strengthened the reliability of its new financing efforts. The average daily stock volume is $5.6 billion, suggesting that Vitanza repeats its purchase rating and price target of $550, bringing another $56.7 billion over the next 32 months is realistic.
Both analysts also praised the strategy’s decision to increase Bitcoin-related performance targets, including increasing the yield target for the 2025 BTC to 25% (from 15%) and the BTC $ increase to $15 billion (from 10 billion). Benchmark’s Palmer pointed out that the company has already achieved around 90% of its original BTC yield target in just four months.
MSTR stocks rose 1.8% early on Friday to $388 as Bitcoin continues to stomp water below the $97,000 level.
Highlights of revenue calls
“More companies can benefit from adopting the standard for Bitcoin, allowing them to legalize Bitcoin and attract more capital,” Saylor said during a post-revenue conference call Thursday evening. “As more companies participate, we will stabilize and promote Bitcoin prices,” he continued. “Each market needs its own BTC companies and as we participate more, we accelerate our transition to the Bitcoin standard and pressure others to participate.”
The story continues