MicroStrategy Incorporated (NASDAQ: MSTR) has been given a robust share price target of $554 by equity research firm Canaccord Genuity, predicated on the company's strategic decision to adopt Bitcoin (CRYPTO: BTC) as its primary treasury reserve asset.
The move saw the enterprise software company's shares surge by 242% since August 2020.
The valuation methodology applied by Canaccord includes a 30% premium to MicroStrategy's software business, alongside a 20% premium to its current Bitcoin reserves.
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The firm justifies this target by noting MicroStrategy's significant outperformance relative to leading tech stocks and even Bitcoin itself over a three-year span of market volatility.
MicroStrategy's aggressive addition of 6,067 Bitcoin to its holdings in Q3, bringing its total to 158,245 Bitcoin, demonstrates a ...