MicroStrategy sharply elevated its capital-raising goal and 2025 bitcoin acquisition targets in its earnings report, prompting a bullish revision from analysts at H.C. Wainwright.
In a analysis observe dated Might 2, analyst Mike Colonnese turned incremenetally bullish on Strategy’s inventory with a worth goal lifted from $480 to $521, citing elevated BTC holdings forecasts and robust execution on capital elevating.
As half its first quarter earnings report on Thursday, Technique doubled its capital plan to $84 billion by means of 2027, up from the $42 billion objective introduced in late 2024. The brand new “42/42” plan consists of $42 billion in fairness and $42 billion in fixed-income issuance, together with convertibles and preferreds.
The agency has already raised $10 billion this 12 months and purchased 106,085 Bitcoin (BTC) so far. Technique’s bitcoin yield by means of April was 13.7%, representing 91% of its unique annual goal, with a $5.8 billion achieve already booked, or 58% of the preliminary objective.
Bullish momentum
Technique’s Q1 2025 outcomes included the acquisition of 80,715 BTC for $7.7 billion, funded through fairness and convertible bond issuance. An extra 25,370 BTC was purchased in April. The agency’s BTC yield for Q1 stood at 11%, with a $4.1 billion achieve primarily based on quarter-end costs.
Colonnese now expects Technique to finish 2025 with 691,249 BTC, up from a previous estimate of 601,029. His BTC achieve forecast rises to $12 billion, with a year-end worth assumption of $150,000 per coin. Whereas nonetheless beneath the corporate’s revised steerage of $15 billion in features and a 25% BTC yield, Colonnese sees Technique’s capital entry and efficiency as robust indicators of progress.
Regardless of slicing projected revenues for 2025 and 2026 to $461.2 million and $475.7 million respectively, down from earlier estimates of $473 million and $485.1 million, Colonnese emphasised the corporate’s capacity to keep up a premium valuation. The $521 worth goal is predicated on a 2x premium to the agency’s projected 2025 web asset worth of $103.7 billion.
