Straight Talk on MSTR: Still a Strong Bet Despite Q1 Loss
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Strategists Continue to Be Optimistic About the Crypto Purchase Intentions of the Subject in Question
Investment analysts from firms Benchmark and Bernstein are sticking by their bullish stance on MicroStrategy (MSTR), even after the company reported a whopping loss of $5.9 billion on its Bitcoin holdings in Q1 2025.
Why, you ask? Because MSTR's Bitcoin buying spree is the name of the game, baby! Since pivoting from software development about five years ago, Bitcoin has become their bread and butter. Even though over 70 companies have jumped on the Bitcoin bandwagon, MSTR's early move has given them a significant edge.
"Despite the growing sea of Bitcoin-loving companies, MSTR showed off its first-mover advantage on Thursday, demonstrating its ability to scale up its Bitcoin acquisition," said Benchmark senior research analyst Mark Palmer.
Now, MSTR owns a sizable stash of around 554,000 BTC, valued at roughly $53 billion based on current prices. They've got their Bitcoin at an average cost of $68,459, as of April 28.
And they're not done yet! Last October, MSTR announced a plan to purchase $42 billion in Bitcoin by various methods, and they recently unveiled a new "42/42 Plan" to acquire an additional $42 billion in Bitcoin through 2027. They aim to raise a total of $84 billion of capital ($42 billion in equity and $42 billion in fixed income) through 2027 to fund these purchases.
Benchmark set a price target of $650 for MSTR shares, citing analysis that includes the projected value of their BTC holdings, a 15x multiple of their BTC dollar gain, and the projected value of their software business. Shares of MSTR closed up 3.3% on Friday at $394.37, with a 26% return over the past month.
Bernstein analysts set a $600 price target for MSTR and highlighted their additional $10 billion in Bitcoin and the scaling of their capital program to 42:42 from 21:21. They continue to view MSTR as the most scalable Bitcoin vehicle, despite its premium to its Bitcoin net asset value.
Bitcoin now sits at around $96,700, unchanged from the previous day.
Despite the Q1 loss, MSTR now trades at 2.13x its net asset value, which is seen as an attractive level by analysts given the company's demonstrated ability to create shareholder value through its treasury operations.
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[Source: Decrypt][1] MarketWatch[2] InvestorPlace[3] Yahoo Finance[4] Google Finance[5] MarketWatch Real-Time Quote
- In the crypto ecosystem, MicroStrategy (MSTR) retains its strength, as investment analysts from firms like Benchmark and Bernstein affirm their bullish stance, despite a $5.9 billion loss on their Bitcoin holdings in Q1 2025.
- The reason for their continued optimism lies in MSTR's strategic shift from software development five years ago, which transitioned Bitcoin into their primary digital asset, making it their 'bread and butter'.
- MSTR's early move into Bitcoin gives them a significant edge, as over 70 companies have followed suit, yet MSTR showcased its first-mover advantage by scaling up its Bitcoin acquisition last Thursday, according to Benchmark senior research analyst Mark Palmer.
- Interestingly, MSTR currently holds around 554,000 BTC, valued at approximately $53 billion based on current prices, with their Bitcoin acquired at an average cost of $68,459 as of April 28, 2025.
- In an ambitious move, MSTR announced plans to purchase $42 billion in Bitcoin by various methods, and recently unveiled the "42/42 Plan" to acquire an additional $42 billion in Bitcoin through 2027, aiming to fund these purchases with a total of $84 billion of capital.
