Brett Knoblauch, Head of Crypto and Digital Assets Research at Cantor Fitzgerald, predicts that MicroStrategy (MSTR) stock could rise to $613. He attributes this potential increase to the company’s “capital markets flywheel” strategy, which allows it to add Bitcoin per share.
Knoblauch highlights that Bitcoin’s rise post-U.S. election significantly benefited MicroStrategy (MSTR), enabling the company to raise approximately $18 billion in late 2024. He estimates MicroStrategy could issue $6.7 billion in equity, $2 billion in preferred stock, and $18 billion in debt while acquiring an additional 287,000 BTC. Furthermore, he predicts the company will maintain a yield above 10% on Bitcoin until 2025, potentially generating an extra $400 million for the U.S. Treasury.
“Ultimately, we are expecting 2025 to be another year where MSTR delivers a BTC yield above 10%, which would suggest treasury operations profits of more than $4B.”
Knoblauch noted.
On January 13, MicroStrategy made its latest acquisition by purchasing 2,530 BTC for $243 million, further increasing market optimism. The company also reinforced its status as the largest corporate holder of Bitcoin by acquiring an additional 1,070 BTC for $101 million, at an average price of $94,004 per Bitcoin. As of January 5, MicroStrategy held 447,470 BTC, valued at $27.97 billion, with an average purchase price of $62,503 per Bitcoin. Additionally, MicroStrategy reported a Bitcoin yield of 48% for Q4 2024 and 74.3% for the entire year.
In another development, MicroStrategy announced plans to raise $2 billion through a preferred stock offering as part of its 21/21 Plan, which aims for $42 billion over three years. The offering will include perpetual preferred stock that may convert to common stock, with options for cash dividends and redemption. The company holds 446,400 BTC worth $43.67 billion, with a 56.78% realized gain. Proceeds from the offering will strengthen its balance sheet and support future Bitcoin purchases.
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