Benchmark analyst Mark Palmer has repeatedly rated Bitcoin’s huge strategy purchases, raising the price target for MSTR companies to $705, up 85% from the current stock price.
The new target depends on its projection Bitcoin It will reach $225,000 by the end of 2026.
According to Yahoo Finance, the company’s shares are trading around $379.71, with nearly completely unrealized profits on $71 billion in Bitcoin holdings after reporting net profits of $10 billion in the second quarter. It has dropped by 4% since the opening bell.
Palmer said MSTR may not remember “not just the dominant Bitcoin finance company, but also the ambition to become a complete stop, complete with the world’s largest corporate finance ministry, rather than “eyeworthy” revenue.
CEO Phong Le said in yesterday’s revenue that the company aims to bring Microsoft, Google and Amazon’s Treasury to the top in the next three to five years. And he ultimately wants to surpass that of the largest Corporate Treasury Department: Berkshire Hathaway’s $400 billion cash and cash equivalents.
Palmer also noted a major change in how the company funds Bitcoin Treasury growth by eliminating the Convertible’s debt and replacing it with a preferred equity-centric funding model.
In a revenue call last night, Saylor said the Convertible Notes, which he recently used in November 2024, is a suitable tool for the early stages of MSTR’s Bitcoin acquisition. However, in January, the company redeemed a $1 billion conversion to reduce leverage.
The benchmark note also brought attention to new approaches to strategies for issuing common stocks, selling only when the stock was sold when it was traded at a premium against the calculated per share value of Bitcoin and its operating assets.
“The result is that not only MSTR buys Bitcoin, but Bitcoin engineers the financial machines of companies designed to generate religious returns, manage capital gains accurately and scale faster,” Palmer writes.
However, at the time of writing Bitcoin It is being hit by the crypto market and the rest of the stock.
BTC is currently changing its hands at $114,950 after a 3.1% decline in the past day. According to Price Aggregator Coingecko, spot trading volumes on past days reached up to $57 billion. Meanwhile, the global market capitalization of the broader crypto has sunk 8% since Thursday, now at $3.8 trillion.
