CJ- Cryptocurrency Enthusiast
Despite the bear market, three out of four Wall Street analysts are still optimistic about MicroStrategy, according to a Bloomberg report. Michael Saylor, the CEO of MicroStrategy, had spent around $4 billion to purchase Bitcoin as of March 31.
According to the research, these analysts advise purchasing MicroStrategy shares with an average price target that is greater than three times where the company ended trading on June 22.
Mark Palmer of BTIG, the most optimistic of the four analysts, set a price objective of $950 for MicroStrategy. Palmer talked about the advantages MicroStrategy provided investors, besides exposure to Bitcoin.
MicroStrategy specifically provides equity investors with access to Bitcoin investment, which they now lack many efficient ways to acquire. The company also offers a functioning business that generates revenue that can be used to buy Bitcoin.
With a $180 price target on MicroStrategy, Jefferies Senior Analyst Brent Thill was the most pessimistic of the analysts. Thill, on the other hand, made a statement about how the management team of MicroStrategy needs to concentrate more on the company's core software business, which fell 3 percent in the first quarter of 2022.
Currently, from the start of 2022, shares of MicroStrategy have decreased by 69%. This is due to the recent declines in both tech stocks and Bitcoin price this year. The 69% decrease in MicroStrategy is more than the 29% and 55% drops in the Nasdaq 100 Index and Bitcoin, respectively.
Despite this disaster, Michael Saylor is still upbeat about MicroStrategy's Bitcoin plan. The company even faces the prospect of having to make a margin call payment on a $205 million loan it obtained to purchase Bitcoins. In response, Saylor reassured investors that the company had enough of collateral available to pledge.