- Summary:
- MicroStrategy stock price is likely to stay steps ahead of BTC price as its capital raise strategy proves a hit amid solid BTC fundamentals.
MicroStrategy stock price rose for the second successive session on Tuesday, propelled by Bitcoin’s resurgence. The stock closed at +4.19%, with the price at $342.17. BTC’s return above the $95k mark is seen as a bullish sign and raises the prospect of its return to the six-figure level.
The company intends to continue raising capital for its Bitcoin purchases. CEO Michael Saylor revealed on Tuesday that they target to raise $2 billion in the first quarter of 2025, depending on market conditions. Its most recent sale took place between 6th-12th January 2025, where it raised $243 million. MicroStrategy (NASDAQ: MSTR) intends to raise $21 billion through equity sale in the next three years.
Meanwhile, its current Bitcoin holdings were purchased at an average price of $62,691, pointing to a solid bottom line. The huge divergence between Bitcoin price and MicroStrategy’s market capitalization is a strong incentive for investors to buy the company’s perpetual preferred shares. Its 450,000 BTC are valued at about $43.5 billion while its market cap is at $84 billion. That raises the likelihood of a stronger upside by MicroStrategy stock price.
Many analysts are upbeat on MSTR price performance this year, with Benchmark placing its target at $650 in its latest outlook and Cantor Fitzgerald raising it from $518 to $ 613. These figures imply an upside potential of between 79%-90% from the current level.
MicroStrategy Stock Price Prediction
MicroStrategy stock price pivots at $337 and the upside is likely to continue if action stays above that level. The next barrier is likely to be at $347, but the stock could breach that level if the momentum strengthens and potentially test $355.
Conversely, the momentum could shift to the downside if MSTR breaks below $337. That will likely see the first support come at $328. The upside narrative will be invalid if the stock breaks below that level. Furthermore, the resulting momentum could send it lower and test the second support at $320.
