Wall Street analysts are held firmly at the aggressive climbing of the strategy (MSTR) of its Bitcoin acquisition strategy (BTC) after the company has unveiled its capital raising ambitions.
“While the number of companies that have sought to reproduce the Strategment Bitcoin Acquisition Strategy continued to grow quickly … MSTR yesterday recalled a reminder of the extent of its first engine advantage and how its ability to accelerate its accumulation of Bitcoin continued to increase as its platform has evolved,” wrote Mark Palmer de Benchmar, reiterating his price at $ 650.
Although MSTR is negotiated more than double the value of its 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 a value of shareholders thanks to its cash operations”.
In addition to the declaration of its first quarter results Thursday evening, Strategy announced an expansion of its recent 21/21 – $ 42 billion plan via the emission of ordinary shares and debt (or debt titles) – to a total of $ 84 billion.
The Vitanza Lance of TD Cowen, on the other hand, recognized the ambition of the updated strategy, calling it “perhaps aggressive, but in no way out of the question”. The company noted that the strategy had already raised $ 28.3 billion as part of the original plan 21/21 and that the market capitalization of $ 111 billion in the company and in -depth liquidity strengthen the credibility of new fundraising efforts. With an average daily volume of $ 5.6 billion, Vitanza – reiterating its purchase rating and price target of $ 550 – suggested that the increase of additional $ 56.7 billion in the next 32 months is realistic.
The two analysts also praised the strategous decision to increase its Bitcoin -related performance objectives, including the increase in its 2025 BTC yield target (compared to 15%) and the $ $ 15 billion gain (compared to $ 10 billion). Palmer de Benchmark stressed that the company had already reached around 90% of its original BTC yield target in just four months.
MSTR shares are 1.8% higher at $ 388 early on Friday, while Bitcoin continues to walk on water just below the $ 97,000.
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“The adoption of the Bitcoin standard by more companies is beneficial, legitimately Bitcoin and attracting more capital,” said Saylor at the post-benefit call conference on Thursday evening. “While more and more companies join, it stabilizes and increases the price of Bitcoin,” he continued. “Each market needs its own BTC companies, and in addition to joint, it accelerates the transition to Bitcoin standard, pressure on others to join.”
Responding to concerns about dilution, the CEO Fong Li highlighted the accretive nature of equity increases:
“Establishment of equity more than once MNAV [the multiple of the company’s net asset value] is accreatively, not dilutive, “said Li.” As MNAV increases, the emission of equity is more like a fixed income, and we aim to make the fixed income market more efficient. “”
Recognizing the unrealized loss of $ 5.9 billion in the company in the first quarter due to the drop in bitcoin prices under the accounting of fairly adopted value, the financial director Andrew Kang remained imperturbable:
“Despite volatility, we believe that transparency is vital … We expect more positive fluctuations over time, aligning with our long -term strategy.”
