{"id":31188,"date":"2024-10-19T10:45:49","date_gmt":"2024-10-19T07:45:49","guid":{"rendered":"https:\/\/coinengineer.net\/blog\/?p=31188"},"modified":"2024-10-19T09:54:52","modified_gmt":"2024-10-19T06:54:52","slug":"microstrategy-stocks-bitcoin-premium-defended-by-analyst-as-smart-leverage","status":"publish","type":"post","link":"https:\/\/coinengineer.net\/blog\/microstrategy-stocks-bitcoin-premium-defended-by-analyst-as-smart-leverage\/","title":{"rendered":"MicroStrategy Stock\u2019s Bitcoin Premium Defended by Analyst as \u2018Smart Leverage\u2019"},"content":{"rendered":"<p>Benchmark analyst Mark Palmer said the growing premium to net asset value (NAV) of business intelligence firm and institutional bitcoin holder <strong>MicroStrategy<\/strong> (MSTR) shouldn\u2019t be a cause for concern for investors. The analyst maintained a buy rating on MicroStrategy stock, citing strong BTC returns from U.S. equity markets and bitcoin arbitrage, and raised his price target to $245 from $215.<\/p>\n<p>MSTR stock, currently trading at a 2.3x premium, reached a three-year high of 2.7x earlier this month, igniting arguments from those who argue that the stock should trade at a level closer to bitcoin holdings. While these critics acknowledged that the rise in bitcoin has positively impacted MicroStrategy\u2019s stock price, they argued that the large premium on the stock is unjustified.<\/p>\n<p>But Mark Palmer of Benchmark disagreed, highlighting MicroStrategy\u2019s strategy of increasing its bitcoin holdings per share through low-cost debt and equity dilution. This \u201cflywheel\u201d effect, according to the analyst, shifts MicroStrategy\u2019s valuation from being solely dependent on its NAV. The company\u2019s ability to generate compound returns on its bitcoin holdings \u2014 a method management calls \u201csmart leverage\u201d \u2014 sets MicroStrategy apart from other bitcoin investments like ETFs, justifying the premium on its stock.<\/p>\n<p><em>Might interest you: <a href=\"https:\/\/coinengineer.net\/blog\/what-is-babydoge\/\">What is BabyDoge?<\/a><\/em><\/p>\n<p>As of September 19, MicroStrategy held 252,220 bitcoins, worth about $15.8 billion. The company has been buying bitcoins periodically over the past few years.<\/p>\n<p>Palmer also highlighted the company\u2019s newly created BTC Yield metric, which measures the growth of its bitcoin holdings per share. MicroStrategy has returned 17.8% since the beginning of the year, outperforming previous years. The analyst also highlighted the dramatic price increase MSTR shares have seen since adopting the bitcoin strategy, confirming his confidence in the company\u2019s approach and raising his stock price target to $245.<\/p>\n<hr \/>\n<p><em>You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don\u2019t forget to follow us on our\u00a0<a href=\"https:\/\/t.me\/coinengineernews\" target=\"_blank\" rel=\"nofollow noopener\"><strong>Telegram,\u00a0<\/strong><\/a><a href=\"https:\/\/www.youtube.com\/@CoinEngineer\" target=\"_blank\" rel=\"nofollow noopener\"><strong>YouTube<\/strong><\/a>,\u00a0and\u00a0<a href=\"https:\/\/twitter.com\/coinengineers\" rel=\"nofollow\"><strong>Twitter<\/strong><\/a>\u00a0channels for the latest news and updates.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Benchmark analyst Mark Palmer said the growing premium to net asset value (NAV) of business intelligence firm and institutional bitcoin holder MicroStrategy (MSTR) shouldn\u2019t be a cause for concern for investors. The analyst maintained a buy rating on MicroStrategy stock, citing strong BTC returns from U.S. equity markets and bitcoin arbitrage, and raised his price<\/p>\n","protected":false},"author":6,"featured_media":31189,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9,2],"tags":[1494,1496,9045],"class_list":["post-31188","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto-news","category-news","tag-microstrategy","tag-microstrategy-bitcoin","tag-microstrategy-share"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>MicroStrategy Stock\u2019s Bitcoin Premium Defended by Analyst as \u2018Smart Leverage\u2019 - Coin Engineer<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/coinengineer.net\/blog\/microstrategy-stocks-bitcoin-premium-defended-by-analyst-as-smart-leverage\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"MicroStrategy Stock\u2019s Bitcoin Premium Defended by Analyst as \u2018Smart Leverage\u2019 - Coin Engineer\" \/>\n<meta property=\"og:description\" content=\"Benchmark analyst Mark Palmer said the growing premium to net asset value (NAV) of business intelligence firm and institutional bitcoin holder MicroStrategy (MSTR) shouldn\u2019t be a cause for concern for investors. The analyst maintained a buy rating on MicroStrategy stock, citing strong BTC returns from U.S. equity markets and bitcoin arbitrage, and raised his price\" \/>\n<meta property=\"og:url\" content=\"https:\/\/coinengineer.net\/blog\/microstrategy-stocks-bitcoin-premium-defended-by-analyst-as-smart-leverage\/\" \/>\n<meta property=\"og:site_name\" content=\"Coin Engineer\" \/>\n<meta property=\"article:published_time\" content=\"2024-10-19T07:45:49+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-10-19T06:54:52+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/coinengineer.net\/blog\/wp-content\/uploads\/2024\/10\/telegram-nft-1-1024x576.png\" \/>\n\t<meta property=\"og:image:width\" content=\"1024\" \/>\n\t<meta property=\"og:image:height\" content=\"576\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Tanju Akb\u0131y\u0131k\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Tanju Akb\u0131y\u0131k\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/coinengineer.net\/blog\/microstrategy-stocks-bitcoin-premium-defended-by-analyst-as-smart-leverage\/\",\"url\":\"https:\/\/coinengineer.net\/blog\/microstrategy-stocks-bitcoin-premium-defended-by-analyst-as-smart-leverage\/\",\"name\":\"MicroStrategy Stock\u2019s Bitcoin Premium Defended by Analyst as \u2018Smart Leverage\u2019 - 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