Wall Street analysts are closely monitoring MicroStrategy’s aggressive strategy to increase its Bitcoin 
$102,568 reserves and double its capital-raising efforts. The company aims to attract investors by elevating its performance targets related to Bitcoin.
Giant Bitcoin Whale
Analysts note that MicroStrategy’s first-mover advantage persists, and the growing demand for its shares is speeding up its Bitcoin accumulation. Mark Palmer from Benchmark highlights that despite the company’s market valuation being high relative to its Bitcoin holdings, this scenario effectively enhances the company’s share value.
“We see other public companies replicating the company’s Bitcoin acquisition strategy; the first mover advantage continues.”
More Bitcoin Acquisition Ahead
Lance Vitanza from TD Cowen describes the strategy as bold and ambitious, noting that the previous plan raised $28.3 billion, with the new target being even higher. Vitanza expresses confidence in the new capital-increase efforts due to the company’s strong market valuation and deep transaction volume. The latest report shows that the company has raised its Bitcoin-related performance targets, increasing the BTC earnings target for 2025 from 15% to 25%.
Additionally, Palmer from Benchmark emphasizes that the company has achieved nearly 90% of its original BTC Yield target shortly. This indicates that MicroStrategy’s strategic path is viewed positively by investors.
CEO Fong Li states that the issuance of new shares above the mNAV does not have a dilutive effect; instead, it creates a structure similar to the fixed income market.
“Issuing shares at a value above mNAV is not dilutive but value-enhancing.”
Chairman Michael Saylor points out that the adoption of the Bitcoin standard by more companies is legitimizing the crypto market, directing more capital into this space.
“Increased participation by companies leads to Bitcoin’s price stability and growth.”
Finance Director Andrew Kang emphasizes the importance of transparency despite the fluctuations in Bitcoin prices. He emphasizes that the company’s recent $5.9 billion short-term loss is expected to recover positively in the long term as part of its strategy.
“Despite volatility, transparency is our core principle, and we expect improvement over time.”
MicroStrategy shares rose by 1.8% to $388 early in the trading day, while Bitcoin is trading just below the $97,000 threshold. Investors will continue to assess the company’s strategic steps toward capital raising and Bitcoin acquisition for their long-term effects.
