MicroStrategy is expected to surpass Intel due to its growth driven by Bitcoin. MicroStrategy is now worth more than $100 billion, putting it in a position to overtake Intel, the massive semiconductor business, which is valued at around $102 billion. The reason for this increase is MicroStrategy’s ongoing Bitcoin investment frenzy, which has raised the company’s stock price dramatically and made it one of the most traded stocks in the United States.
MicroStrategy’s plan to buy Bitcoin, dubbed the “21/21 Plan,” entails raising $21 billion in debt and equity to support its crypto-buying activities over the coming years. Although opinions on this audacious strategy have been divided, it has had a significant impact on the company’s stock price, which has outperformed several of its main rivals.
Now, analysts have even greater optimism over the company’s future. Benchmark analyst Mark Palmer recently increased his target price for MicroStrategy’s shares from $300 to $450 per share. Given that Bitcoin might hit $225,000 by 2026, he thinks MicroStrategy’s worth will keep increasing.
Since the company’s most recent acquisition of more than 51,000 BTC for almost $4.6 billion, its Bitcoin holdings have grown to astounding proportions. This raises MicroStrategy’s total Bitcoin holdings to over $40 billion, a significant asset that is fueling the company’s skyrocketing market valuation.
In addition to obtaining Bitcoin, MicroStrategy’s strategy involves gauging its effectiveness using a special statistic known as “Bitcoin yield.” By calculating the company’s Bitcoin holdings in relation to its shares, this provides a fresh method of evaluating its performance in the market. MicroStrategy’s Bitcoin plan seems to be working, as seen by the company’s stock rising further, setting it up to take on established tech behemoths like Intel in the months ahead.
