MicroStrategy (MSTR) is uniquely positioned among listed companies to benefit from an increase in the price of bitcoin (BTC), Berenberg said in a report Thursday.
Berenberg initiated coverage of the stock with a buy rating and a $430 price target. The shares slid about 2% in premarket trading to $312.
The business analytics software company founded by Michael Saylor, now executive chairman, is the largest corporate holder of bitcoin as a balance sheet treasury asset, owning around 140,000 BTC at an average cost of $29,800. The stash is worth about $4.1 billion at current prices.
MicroStrategy shares offer an “attractive way for investors to gain exposure to bitcoin and to navigate the digital asset space amidst the ongoing regulatory crackdown,” analyst Mark Palmer wrote.
“Bitcoin has emerged as a safe haven relative to other crypto tokens,” the note said. If investors “increasingly turn to bitcoin as an alternative currency amidst macro-related fears, then MicroStrategy shares stand poised to benefit.”
The fourth bitcoin halving, scheduled for May 2024, may serve as a positive catalyst for the BTC price and by extension, for MicroStrategy shares, the note added.
MicroStrategy is due to report first-quarter earnings after market close on May 1.
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