Wall Street analysts are firmly behind the aggressive escalation of Strateges (MSTR) of their Bitcoin acquisition strategy (BTC) after the company announced the plans to double its capital collection ambitions.
“While the number of companies that have tried to replicate the strategy acquisition strategy of the strategy has continued to grow rapidly … Mstr yesterday issued a reminder of the extension of their first movement advantage and how its ability to accelerate its accumulation of accumulation of Bitcoin has continued to increase as its platform has climbed,” Markmark wrote from Benchmark, reiterating its purchase and its price of $ 650.
Although Mstr trades more than double the value of his Bitcoin holdings, Palmer says that the level is “attractive” thanks to the executive president Michael Saylor and the “demonstrated capacity of the team to create value of the shareholders through their treasure operations.”
Together with informing its results of the first quarter on Thursday night, the strategy announced an expansion of its recent plan 21/21, raising $ 42 billion by issuing common shares and debt (or values similar to debt), to a total of $ 84 billion.
Meanwhile, Lance Vitanza de TD Cowen recognized the ambition of the updated strategy, qualifying it as “aggressive perhaps but in no way out of discussion.” The firm pointed out that the strategy has already collected $ 28.3 billion under the original plan 21/21 and that the market capitalization of $ 111 billion significantly higher of the company and the deep commercial liquidity reinforces the credibility of the new fundraising efforts. With an average volume of daily shares of $ 5.6 billion, vitanza, reiterating its purchase rating and an objective price of $ 550, suggested that collecting another $ 56.7 billion in the next 32 months is realistic.
Both analysts also praised the decision of the strategy of increasing their Bitcoin -related performance objectives, including the collection of their performance of 2025 BTC at 25% (15%) and BTC $ profit at $ 15 billion (of $ 10 billion). Palmer de Benchmark pointed out that the company has already achieved ~ 90% of its original BTC performance objective in just four months.
MSTR shares are higher by 1.8% at $ 388 on early Friday, since Bitcoin continues to step on water just below the level of $ 97,000.
Outstanding Gains calls
“The adoption of the Bitcoin standard for more companies is beneficial, legitimizing Bitcoin and attracts more capital,” Saylor said at the telephone conference after the profits on Thursday night. “As more companies come together, stabilize and increase the price of Bitcoin,” he continued. “Each market needs its own BTC companies, already measured more, accelerate the transition to the Bitcoin standard, pressing others to join.”
When addressing concerns about dilution, CEO Fong Li emphasized the accumulated nature of equity that increases:
“Issue equity in more than once Mnav [the multiple of the company’s net asset value] It is accumulated, not dilutive, “Li said.” As Mnav increases, capital issuance becomes more as fixed income, and our goal is to make the fixed income market more efficient. “
Recognizing the unrealized loss of $ 5.9 billion of the company in the first quarter due to the decrease in the price of Bitcoin under the newly adopted fair value accounting, the Andrew Kang CFO remained unchanged:
“Despite volatility, we believe that transparency is vital … We expect more positive changes over time, aligning with our long -term strategy.”
