MicroStrategy’s shares are expected to jump nearly 70% as the company adopts a novel bitcoin treasury strategy, according to Keefe, Bruyette & Woods (KBW). The research firm initiated coverage of the stock with an outperform rating and set a price target of $560. Analyst Bill Papanastasiou praised the company’s approach, calling it “an attractive proxy for investors seeking levered bitcoin exposure.” In its quarterly update, MicroStrategy reported a 74.3% bitcoin yield, surpassing its previous record. The company aims to increase this yield to 15% over the next three years.
KBW suggests that MicroStrategy may be added to the S&P 500 index due to its adoption of a new accounting standard that allows companies to recognize unrealized gains. This change could result in a one-time adjustment of $12.75 billion to retained earnings. Analysts believe that MicroStrategy’s participation in the index “could unlock massive value” as it develops applications built on top of the Bitcoin network, making it a key player in the ecosystem’s growth and development.
Source: https://www.cnbc.com/2025/02/07/kbw-says-microstrategy-to-jump-nearly-70percent-and-may-be-added-to-sp-500.html