ClearStreet Raises Target Price for MicroStrategy from $201 to $211

U.S. investment firm ClearStreet has raised its target price for Bitcoin-holding company MicroStrategy (MSTR) from $201 to $211. ClearStreet evaluated that it has improved its financial structure and secured additional capacity for Bitcoin purchases through preferred stock buybacks and an increase in dollar cash reserves. According to CoinGape on the 20th, ClearStreet maintained a buy recommendation for MicroStrategy and raised its target price by about 5%. MicroStrategy used the funds raised from its common stock issuance in the third quarter of this year for the purchase of preferred stock STRC and to bolster its dollar reserves. ClearStreet pointed out that the scale of MicroStrategy's common stock issuance has outpaced the speed of Bitcoin purchases as a risk factor, but positively assessed that the preferred stock is trading around its par value of $100 after the STRC buyback. MicroStrategy announced on the 19th that it had purchased an additional 267 Bitcoins, continuing its Bitcoin purchases for five consecutive weeks. ClearStreet identified the upcoming earnings announcement of MicroStrategy scheduled for the 29th as a key variable. On the 28th, STRC preferred shareholders will vote on a proposal to change the dividend payment cycle to a daily basis, and MicroStrategy announced a conditional daily dividend plan for November. On the 11th of next month, MSCI is expected to announce whether MicroStrategy will remain in its index. Following the news of the target price increase, MicroStrategy's stock price rose, with CoinGape reporting that the stock price increased by over 7% to approximately $146. According to Yahoo Finance, as of 11:33 AM Eastern Time, MicroStrategy's stock price was $143.60, up $7.58 (5.57%) from the previous trading day.

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