- MicroStrategy expands its bitcoin holdings significantly, impacting its stock value.
- Analysts provide mixed forecasts with potential upside and significant risks.
- GuruFocus estimates a considerable downside based on historical value calculations.
MicroStrategy (MSTR, Financial) has made headlines by acquiring an additional 3,459 bitcoins, investing a substantial $285.8 million. This purchase, completed in the week ending April 13, reflects a steep average price of $82,618 per bitcoin. This strategic move has increased the company's total bitcoin holdings to 531,644, with an overall average purchase price of $67,556 per bitcoin. Following this announcement, MicroStrategy shares experienced a 3.67% rise in pre-market trading.
Wall Street Analysts Provide Varied Forecasts
According to forecasts from 12 analysts, the one-year price target for MicroStrategy (MSTR, Financial) averages at $443.34. The projections range from a high of $600.00 to a low of $200.00, suggesting a potential upside of 47.79% from the current stock price of $299.98. For more detailed price target information, visit the Strategy (MSTR) Forecast page.
The consensus from 12 brokerage firms positions MicroStrategy's (MSTR, Financial) average recommendation at 2.0 on a scale where 1 signifies a Strong Buy and 5 indicates a Sell. This suggests that the stock holds an "Outperform" status in the eyes of these analysts.
However, the GF Value calculated by GuruFocus paints a different picture. The estimated GF Value for MicroStrategy (MSTR, Financial) in the next year stands at a mere $19.55, indicating a dramatic downside of 93.48% from its current trading price of $299.98. The GF Value represents an estimate of what the stock should be worth based on historical trading multiples, past business growth, and future business performance forecasts. For a comprehensive overview, refer to the Strategy (MSTR) Summary page.
