MicroStrategy price target raised to $1,800 from $780 at BTIG

BTIG raised the firm’s price target on MicroStrategy to $1,800 from $780 and keeps a Buy rating on the shares. The stock has rallied 155% year-to-date, driven by the price of bitcoin rallying 50%, which benefits MicroStrategy’s corporate strategy of acquiring and holding bitcoin, accretive capital raises in the form of equity and convertible debt which has increased the number of bitcoin per share for equity holders, and the implied premium of the company’s bitcoin holdings within a sum-of-the-parts valuation analysis has increased to more than 2-times, compared to 1.5-times on average during the last year, the analyst tells investors in a research note. BTIG thinks the implied premium of the company’s bitcoin holdings has settled into a new norm above 2-times. The firm also expects MicroStrategy to benefit from bitcoin catalysts during the coming year, specifically the bitcoin halving event estimated to take place this month.