Bloomberg says that despite the bear market, three out of four Wall Street analysts are still optimistic about MicroStrategy. As of March 31, MicroStrategy’s CEO, Michael Saylor, had spent about $4 billion buying Bitcoin.
According to the report, these analysts think you should buy MicroStrategy shares with an average price target that is more than three times what the stock closed at on June 22.
Mark Palmer of BTIG was the most optimistic of the four analysts, with a price target of $950 for MicroStrategy. Palmer talked about the other benefits that MicroStrategy gave investors besides access to Bitcoin.
Brent Thill, a senior analyst at Jefferies, was the most pessimistic of the analysts. He thought the price of MicroStrategy would go down to $180. On the other hand, Thill said that MicroStrategy’s management team needed to pay more attention to the company’s core software business because it had dropped by 3% in the first quarter of 2022.
Since the beginning of 2022, MicroStrategy shares have dropped by 69 percent. This is because tech stocks and Bitcoin have both dropped recently. MicroStrategy’s 69 percent drop is greater than the Nasdaq 100 Index’s 29 percent drop and Bitcoin’s 55 percent drop.
Michael Saylor is still optimistic about MicroStrategy’s Bitcoin plan, even though the price of Bitcoin dropped. Even a loan of $205 million that the company used to buy shares is at risk of being called in.
Even more BTC. Saylor told the investors that the company has a lot of assets that could be used as collateral if needed.