Benchmark analyst Mark Palmer stated that MSTR’s ability to leverage its Bitcoin holdings sets it apart from other ways to gain exposure to the cryptocurrency, such as a spot Bitcoin ETF.
He also reiterated his buy rating and raised the MicroStrategy price target to $245 from $215.
Venture capital firm Benchmark has reported that MicroStrategy (MSTR) is overvalued compared to its number of Bitcoin holdings, according to a research report by CoinDesk. Palmer believes that the value of the company’s Bitcoin holdings and software business will continue to grow, and that the high stock price is justified due to providing value beyond just holding Bitcoin.
This has led to the market being bearish on the company, suggesting that the high stock price does not take into account the “unique” shareholder value that the company offers.
Benchmark calculated the net asset value (NAV) of MSTR by dividing its market cap by the value of its Bitcoin holdings, revealing a 2.5x premium recently reached, with a market capitalization of $41 billion compared to Bitcoin holdings of $17 billion. The MSTR stock rose by 6.6% to $206.19, thanks in part to the Bitcoin price rising to $68,400.
