MicroStrategy's stock price surged over 6% on October 24, 2024, reaching above $230, marking its highest point in nearly 25 years and since it began acquiring Bitcoin in 2020. The price of Bitcoin has also seen an increase of 20% within this timeframe. MicroStrategy has redefined itself from an enterprise software company to a significant player in Bitcoin investment, holding 252,220 Bitcoin valued at approximately $17 billion. The company’s strategy involves issuing debt and equity to enhance its Bitcoin acquisitions. Bernstein analysts regard MicroStrategy as an active leveraged Bitcoin equity strategy and recently assigned it an 'Outperform' rating with a price target of $290. Despite its success, critics like economist Peter Schiff argue that the stock is overvalued and predict a significant downturn eventually. As of now, MicroStrategy's valuation reflects a 2.7x premium relative to its Bitcoin holdings, the highest since February 2021.

Source 🔗