In a recent report, Benchmark has raised its price target for MicroStrategy’s stock from $215 to $245. Analyst Mark Palmer asserts that both the company's bitcoin holdings and software business will continue to grow in value. He emphasizes that the high stock price is justified as it offers more value compared to merely holding substantial amounts of bitcoin.

Palmer stated:

“We believe the ability of MSTR to generate compounding yield on its bitcoin holdings, using what management describes as ‘intelligent leverage,’ differentiates its stock from alternative means of gaining exposure to bitcoin such as spot bitcoin ETFs.”

Translation: “Мы считаем, что способность MSTR генерировать накопленный доход на своих биткойн-активах, с использованием того, что руководство называет «интеллектуальным рычагом», отличает его акции от альтернативных способов получения экспозиции к биткойну, таких как спотовые ETF на биткойн.”

Palmer reiterated his buy rating and has increased his price target to $245 from $215. Following a rise in bitcoin's price to $68,400, MSTR shares gained 6.6% to reach $206.19.

MicroStrategy’s stock, guided by Michael Saylor, currently trades at a premium of 2.4 times the value of its bitcoin holdings. The company's net asset value (NAV) has reached a new peak of 2.5 times the bitcoin holdings, with a market cap exceeding $41 billion against bitcoin assets of approximately $17 billion.

Benchmark believes that MicroStrategy’s innovative business model justifies the premium to NAV and encourages traders to pay close attention to the company’s BTC Yield.