Shares of MicroStrategy are poised for a significant uptick, potentially gaining 30% if Bitcoin (BTC) reaches $150,000 by the close of 2025, as per an August 2 analyst report shared with Cointelegraph.

MicroStrategy’s Stock Surge and Bitcoin Acquisition Strategy

Should MicroStrategy persist in its aggressive Bitcoin acquisition strategy, initiated by founder Michael Saylor in 2020, its stock could escalate to $2,150 per share, as projected by Benchmark fintech analyst Mark Palmer. Currently, the stock trades around $1,450.

“Our valuation assumes that [MicroStrategy] will continue to aggressively accumulate Bitcoin during the next 1.5 years and that Bitcoin’s price will reach $150,000 by the end of 2025,” Palmer conveyed to Cointelegraph via email.

In its August 1 earnings call, MicroStrategy reiterated its commitment to BTC acquisition by embracing a novel performance metric: Bitcoin yield. This metric quantifies the ratio of BTC holdings to outstanding shares, effectively positioning BTC-per-share as a benchmark for corporate performance. Palmer elaborated, “The aim is to demonstrate the efficacy of its Bitcoin acquisition strategy and its use of intelligent leverage.”

Read more: MicroStrategy Bolsters Bitcoin Holdings with $786 Million Investment

“While [MicroStrategy’s] approach has had numerous detractors, management has countered criticism by highlighting the scoreboard: since the adoption of its Bitcoin acquisition strategy on August 10, 2020, the company’s stock has appreciated by 1,206%,” the report noted. This performance significantly outpaced both BTC and traditional stocks during the same period.

Benchmark’s “buy” rating is predicated on a sum-of-the-parts analysis that incorporates (1) the estimated year-end 2025 value of the company’s Bitcoin holdings and (2) the estimated year-end 2025 value of its enterprise software business, according to Palmer.

Financial Performance and Future Outlook

Despite a recent decline in its core enterprise software revenue, resulting in losses of $5.74 per share, MicroStrategy continued its Bitcoin acquisition spree, purchasing 12,222 BTC for $805 million — averaging around $65,800 per coin. This acquisition was financed through cash flows, equity, and debt financings, as stated by CEO Phong Q. Le during the call.

Following the investor call, MicroStrategy’s stock dipped by approximately 10%. However, the company’s BTC reserves now stand at 226,500 BTC, valued at around $14.7 billion at current prices.

In conclusion, the potential for a 30% surge in MicroStrategy’s stock hinges on the continued accumulation of Bitcoin and the cryptocurrency’s price hitting the $150,000 mark by 2025. This ambitious strategy underscores the company’s unwavering commitment to leveraging Bitcoin as a cornerstone of its financial strategy.