MicroStrategy’s price might rise to $340, according to experts at Berenberg. They justify their optimistic outlook in a new study.
According to Berenberg’s research, MicroStrategy Inc is a safer choice for cryptocurrency exposure than Coinbase Global Inc.
Mark Palmer and Hassan Saleem predict that the IT firm’s stock price will rise to $340, a 20% increase from its current level. In a recent study, they concluded:
“As an alternative to Coinbase, MicroStrategy stands out due to its distinctive business strategy centred on the purchase and storage of bitcoins.”
The Nasdaq-traded company has around 140,000 BTC in its possession as of this writing. MicroStrategy said in early May that it had written down $170 million of its Bitcoin assets during the first quarter.
Its share price has increased by approximately 100% since the beginning of the year. Berenberg has a “hold” recommendation on Coinbase with a $55 price target, which aligns with where it is currently trading.
They are dovish because of the persistent monitoring from regulators. Compared to Coinbase’s overall income, the profits at stake from enforcement actions are significant.
MicroStrategy is focused on Bitcoin, which is protected from such risks since it is classed as a commodity and not a security. The current value of the correlation between MSTR and COIN is close to 0.96.
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