Analyst Says MicroStrategy Inc.'s Bold Bitcoin Strategy Still Has Room To Run

Core Viewpoint - Canaccord Genuity analyst Joseph Vafi maintains a Buy rating on MicroStrategy Inc. and raises the price forecast from $409 to $464 despite the company reporting a slight revenue miss in Q1 [1] Financial Performance - MicroStrategy reported first-quarter revenue of $111.07 million, which was slightly below analyst expectations, and posted an adjusted loss of $16.53 per share [1] - The company raised funds through two successful preferred stock IPOs and a $2 billion zero-coupon convertible note, enabling the purchase of an additional 106,000 bitcoins for approximately $9.9 billion year-to-date [4] Bitcoin Holdings and Strategy - MicroStrategy's Bitcoin holdings now total 553,555 BTC, with over 15,000 Bitcoin acquired year-to-date at an average price of $92,737, primarily funded through ongoing stock offerings [2] - The firm has been the top-performing S&P 500 stock in recent years and continues to aggressively pursue its Bitcoin-focused treasury strategy [3] Market Dynamics - Despite a challenging Q1 for risk equities, MicroStrategy's equity premium saw a modest rise, indicating resilience [4] - Bitcoin has started to behave independently from traditional risk assets like growth stocks [4] Regulatory Environment - The regulatory environment for digital assets is becoming more favorable, with potential for clearer U.S. regulation expected by late 2025 and early 2026 [5] - More global companies are adopting MicroStrategy's Bitcoin strategy, which is viewed positively by the firm [5] Stock Performance - MSTR shares are trading higher by 3.09% to $393.02 as of the last check [6]