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Michael Saylor’s MicroStrategy stock price could move “meaningfully higher” by the end of this year due to greater institutional adoption of Bitcoin ETFs and the likely rejection of Ethereum ETFs by regulators, TD Cowens said.
One catalyst for the Bitcoin price, and thus MicroStrategy stock, could come on May 15, the deadline for institutional investment managers to file Form 13-F with the Securities and Exchange Commission (SEC). analyst Lance Vitanza said in a May 6 note.
If the documents show that more institutions have purchased Bitcoin ETFs (exchange-traded funds), this will signal an increase in institutional adoption of BTC, Vitanza said.
“#Bitcoin is the best. There is no second best.”
–@saylor#BitcoinforCorporations— MicroStrategy (@MicroStrategy) May 2, 2024
A second potential trigger is the SEC’s likely rejection of Ethereum ETFs about a week later, which could also cause investors to flock to Bitcoin, he said.
Given MicroStrategy’s aggressive accumulation drive BTCBoth developments could positively impact the price of the leading cryptocurrency and MicroStrategy’s share price, Vitanza said.
After attending MicroStrategy’s World 2024 user forum last week in Las Vegas, Vitanza also said customers had a lot of positive feedback about the company’s original software business.
“This causes us to reassess the potential benefits of operations,” the analyst wrote.
MicroStrategy reports a loss of $53.1 million for the first quarter of 2024
Vitanza’s positive outlook for MSTR comes next MicroStrategy reported a net operating loss of $53.1 million for the first quarter of this year. The reason for the loss was the company’s decision not to introduce a new accounting standard for the fair value of digital assets.
If the company had used this new standard, MicroStrategy would have made a significant profit thanks to the strong price increase of BTC.
The MSTR is up 89% this year, but could rise even higher, Vitanza believes.
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