MicroStrategy Stocks Set to Surge Another $100, Analysts Say

Wall Street sees a potential 20% upside in MicroStrategy shares, citing its crypto-focused strategy.

As Seek Alpha reported on Jan. 13, Brett Knoblauch, Cantor Fitzgerald’s Head of Crypto and Digital Assets Research, said he believes MicroStrategy (MSTR) shares will reach $613. Currently, the average price of MSTR on Wall Street stands at $518. If MSTR reaches $613, stock prices will increase by approximately 20%.

Cantor Fitzgerald just increased its price target $MSTR From $518 to $613. 👀

It’s a bit of a cliché to say that Trump insiders know something, but I like this rise.

— Bitcoin Overflow (@btc_overflow) January 13, 2025

He predicts MSTR’s shares will rise because the firm “has developed a capital markets flywheel that allows for bitcoin to be added per share,” Knoblauch wrote in a note.

Additionally, Cantor added that the rise of Bitcoin (BTC) after the US elections was a factor supporting MSTR, so the company raised approximately $18 billion in capital in November and December 2024.

The expert also calculated that MicroStrategy could issue $6.7 billion in equity, $2 billion in preferred, $18 billion in debt and another 287,000 BTC to support its forecast.

MicroStrategy is expected to continue generating more than 10% returns on Bitcoin through 2025, Knoblauch said. He believes this could mean an additional $400 million for the US treasury through MicroStrategy.

“Ultimately, we expect 2025 to be another year in which MSTR delivers over 10% BTC returns, meaning treasury operations will generate more than $4 billion in profits.”

Brett Knoblauch

MicroStrategy’s “21/21” plan has already been implemented, under which the firm wants to accumulate $42 billion worth of BTC over the next three years. The corporate giant started purchasing BTC since August 2020, where it purchased 21,454 BTC for approximately $250 million at an average price of approximately $11,653 per BTC.

The firm’s most recent purchase took place yesterday, January 13, where approximately 2,530 BTC was purchased for $243 million, further fueling optimism in the market. As of today, MicroStrategy has 450 thousand BTC in its portfolio.

Over the past 24 hours, the price of MSTR increased by 0.49% to $328.40, while the price of BTC increased by 0.43% to $94,932; This is a close match in terms of percentage gains. This similarity is due to MicroStrategy’s strong correlation with the BTC price; because the company’s strategy is primarily based on BTC ownership and acquisitions, and thus its shares are sensitive to fluctuations in BTC value.