MicroStrategy shares (NASDAQ:MSTR) have had an impressive surge over the 1st quarter of 2024, and ended the day up by 5.14% on Monday. To have a YTD at such an early stage of 2024 in the green by triple digits (124.26%), and a 52 week performance of 391.24% just shows the staggering climb that MSTR share prices have been taking in recent times.

Why is MicroStrategy share price growing so out of sync with wider markets? Bitcoin is said to take quite a bit of credit, and there may be even more to come according to analysts.

If these percentages weren’t already enough to raise an eyebrow, MicroStrategy is currently on many shortlists to watch as Bitcoin prepares for its much-anticipated halving event, expected around April 20th. The enterprise analytics and mobility software company, which has significantly pivoted its focus towards Bitcoin acquisition and holding, is uniquely positioned to potentially benefit from the historical surge in Bitcoin’s price post-halving events.

One of the analysts to cover MSTR stock, Benchmark made an update to their price target today, rising the mark up by almost double their previous level, supporting the rise with commentary around MicroStrategy being “particularly well positioned to benefit” from the Bitcoin halving. Benchmark analysts have put a pin in the ambitious target price of $1,875 (from $990 ) for MSTR stock.

MicroStrategy has not been coy about its intentions to leverage the Bitcoin market. Having already reported holdings of 214,246 Bitcoins as of March 2024, the company is speculated to further increase its cryptocurrency coffers, and has accumulated funds during recent raises to do just that. Such an aggressive accumulation strategy underscores the company’s commitment to Bitcoin and belief in its long-term value proposition.

 

Top Australian Brokers

 

The innovative approach MicroStrategy takes toward Bitcoin is part of a broader business model. The company plans to continue its Bitcoin purchasing spree, fuelling these acquisitions through a combination of its core software business revenues and strategic capital market ventures. This dual-source funding mechanism supports the company’s ability to keep stacking Bitcoin without overextending its financial framework.

This bullish outlook regarding MicroStrategy’s Bitcoin strategy comes at a time when the market is closely watching the cryptocurrency space. The Bitcoin halving event results in a decrease in the number of coins miners receive for adding new transactions to the blockchain, leading to reduced supply and often a consequent increase in price. Whilst past halving events have been catalysts for substantial Bitcoin price rallies, this may well be a different cryptocurrency market from previous years, so some caution is always advised.

As Bitcoin’s future unfolds, so too does the opportunity for MicroStrategy’s stock to carve a similar trajectory—an ascension that may make it an alluring investment option for those looking to ride the Bitcoin wave, or a pullback just a sharp if things go in the other direction. As the halving event draws closer, all eyes remain fixed on both Bitcoin’s valuation and MicroStrategy’s stock performance, to see if predictions will align with market realities. With stocks as volatile as MSTR, you do need to exercise additional caution. A whipsaw 12 months with lows of $266 against highs of $1999 just show how usual trading ranges do not apply.