Mizuho Securities: MicroStrategy stock still has 50% upside potential due to Bitcoin effect

Odaily News Mizuho analysts led by Dan Dolev gave MicroStrategy shares an outperform rating, believing that it still has more than 50% room to rise and set its target price at $515.

Mizuho analysts believe that MicroStrategy's corporate structure distinguishes it from Bitcoin exchange-traded funds and cryptocurrencies themselves. Its existence as an operating company enables it to access debt and equity capital markets to raise funds to purchase incremental Bitcoin. Coupled with the expected rise in Bitcoin prices, MicroStrategy's Bitcoin holdings are 75% higher than its underlying value, enabling it to increase its Bitcoin holdings at a faster rate than shares diluted by capital market activities. MicroStrategy's debt costs are significantly lower than those of ordinary traders.