Wall Street’s analysts are firmly behind the aggressive strategy (MSTR) aggressive of the approach to getting Bitcoin (BTC) after the company has released plans to double the ambitions that increase capital.
“While the number of companies that seek to replicate the approach to getting bitcoin the approach continues to grow fast … The MSTR yesterday released a reminder of the extent of its first-mover advantage and how the ability to speed up the accumulation of bitcoin continues to rise as its platform is scaled,” Benchmark’s Mark Palmer wrote back to his purchase of rating and $ 650 prices and rating $ 650 prices before price rating and $ 650 prices have been price rating and $ 650 prices have been price rating and $ 650 prices have been price rating and $ 650 price target.
Although MSTR is trading more than double the amount of bitcoin handling its handles, Palmer said the level is “attractive -attractive” thanks to executive chairman Michael Saylor and the “team has shown the ability to create the shareholder value through its treasury operations.”
In conjunction with reporting the first quarter results on Thursday night, the strategy announced an expansion of the last 21/21 plan-raising $ 42 billion by releasing the usual stock and debt (or such security)-to a total of $ 84 billion.
Meanwhile, TD Cowen’s Lance Vitanza recognized the ambition of the updated approach, calling it “aggressive perhaps but not by the question.” The firm noted that the strategy has raised $ 28.3 billion under the original 21/21 plan and that the company’s significantly greater $ 111 billion market cap and deep trade liquidity boosts the credentials of new fundraising efforts. With the average sun -day sharing of $ 5.6 billion, Vitanza -again considering his purchase rating and a price target of $ 550 -suggested that raising another $ 56.7 billion in the next 32 months is realistic.
Both analysts also praised the strategy’s decision to increase Bitcoin -related targets, including increased 2025 BTC yield targets to 25% (from 15%) and earned BTC $ to $ 15 billion (from $ 10 billion). Benchmark Palmer pointed out that the company has achieved ~ 90% of the original BTC’s target yield in just four months.
The MSTR shares of 1.8% up to $ 388 early Friday as Bitcoin continues to tread water below the $ 97,000 level.
Income highlights
“The adoption of the Bitcoin standard of more companies is beneficial, legitimizing Bitcoin and attracting more capital,” Saylor said in a call to the post-earnings conference Thursday night. “As companies participate, it stabilizes and drives the price of bitcoin,” he continued. “Every market requires its own BTC companies, and as more joining, it accelerates the transition to bitcoin standard, forcing others to join.”
Responding to dilution concerns, CEO Fong Li emphasized the accretive character of equity raised:
“The release of equity more than once MNAV (the multiple value of the company’s net asset) is acclative, insoluble,” Li said. “As the MNAV rises, the release of equity becomes like a fixed income, and we aim to make the fixed income market better.”
Recognizing the $ 5.9 billion that the company did not realize in the first quarter due to the decline in Bitcoin price under the newly adopted fair amount of accounting, CFO Andrew Kang remained disagreeable:
“Despite volatility, we believe that transparency is important … We look forward to more positive swings over time, which is aligned with our long -term approach.”
