Maxim starts ‘AI and significant bitcoin play’ MicroStrategy with a Buy

As previously reported, Maxim initiated coverage of MicroStrategy with a Buy rating and $1,835 price target. MicroStrategy’s long-standing position delivering analytics software to enterprises makes it “a unique platform” to integrate artificial intelligence, while the company has also accumulated 226,331 bitcoin as of June 20, currently valued at about $13.4B and representing 55% of the stock’s value, the analyst tells investors. The firm’s $1,835 price target is based on its estimated 2025 value of the company’s bitcoin holdings as it models the value of bitcoin will reach $136,000 at year-end 2025 along with a multiple to 2025 software revenue estimates set at a premium to the peer group given the ongoing transition to cloud, the analyst noted.