With Bitcoin’s Price Rising, MicroStrategy Is In a Unique Position To Benefit: Berenberg

(CTN News) – Bitcoin: A report published on Thursday by German investment bank Berenberg points out that MicroStrategy (MSTR) has the unique position among publicly listed companies to benefit from an increase in bitcoin (BTC) prices in the near future.

In a report published by Berenberg, the stock has been initiated as a buy with a target price of $430 and a buy rating. A drop of about 2% in the share price of the company was reported in premarket trading on Friday, as the share price fell to $312.

Founded by Michael Saylor, who currently holds the position of executive chairman at the company, the business analytics software developer is one of the leading corporate holders of bitcoin as a treasury asset on their balance sheet.

A total of approximately 140,000 are owned by the company. They were each purchased at an average price of $29,800 each, with an average purchase price of $29,800 for each.

At the time of writing, it is estimated that there are about 4.1 billion dollars worth of cash hidden in the stash.

Despite the ongoing regulatory crackdown, MicroStrategy’s shares offer “an attractive way for investors to get exposure to bitcoin and navigate the digital asset space amidst the ongoing regulatory crackdown,” wrote analyst Mark Palmer in a report.

In Palmer’s note, he wrote that has emerged as a safe haven compared to other cryptocurrencies.

I believe that MicroStrategy shares are poised to be a major winner if investors are increasingly turning to bitcoin as an alternative currency amidst macro-related fears.”

There is a possibility that the fourth bitcoin halving, scheduled for May 2024, will serve as a positive catalyst for bitcoin’s price, and by extension, for MicroStrategy shares as well, according to the note.

As soon as the market closes on Monday, MicroStrategy is expected to release its first-quarter earnings report.

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