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Nomura analyst: Due to BTC effect, MicroStrategy stock still has 50% pump space
Golden Finance reported that Mizuho analyst Dan Dolev gave MicroStrategy stock an outperform rating, believing that it still has over 50% pump potential and set a target price of $515. The Mizuho analyst believes that MicroStrategy’s corporate structure sets it apart from BTC exchange-traded funds and the cryptocurrency itself. As an operating company, it can enter the debt and equity capital markets to raise funds for incremental BTC purchases. Combined with the expected pump in BTC price, MicroStrategy’s BTC holdings are 75% higher than its underlying value, allowing it to increase its BTC holdings at a faster rate than the dilution caused by capital market activities. Moreover, MicroStrategy’s debt costs are significantly lower than those of ordinary traders.