{"id":814437,"date":"2024-12-24T01:24:59","date_gmt":"2024-12-24T07:24:59","guid":{"rendered":"https:\/\/newsycanuse.com\/index.php\/2024\/12\/24\/microstrategys-nav-premium-shouldnt-be-feared-says-benchmark-raising-price-target-to-245\/"},"modified":"2024-12-24T01:24:59","modified_gmt":"2024-12-24T07:24:59","slug":"microstrategys-nav-premium-shouldnt-be-feared-says-benchmark-raising-price-target-to-245","status":"publish","type":"post","link":"https:\/\/newsycanuse.com\/index.php\/2024\/12\/24\/microstrategys-nav-premium-shouldnt-be-feared-says-benchmark-raising-price-target-to-245\/","title":{"rendered":"MicroStrategy&#8217;s &#8216;Nav Premium&#8217; Shouldn&#8217;t be Feared, Says Benchmark, Raising Price Target to $245"},"content":{"rendered":"<p>Bitcoins <\/p>\n<div data-module-name=\"article-header\" data-module-version=\"1.0.0\" data-module-instance=\"default\">\n<h2>Bitcoins The company&#8217;s use of &#8220;intelligent leverage&#8221; differentiates its stock from other means of gaining exposure to bitcoin, argued analyst Mark Palmer.<\/h2>\n<p><span>Updated Oct 18, 2024, 3:29\u202fp.m.  UTC<\/span><span>Published Oct 18, 2024, 3:26\u202fp.m.  UTC<\/span><\/p>\n<\/div>\n<div data-module-name=\"article-body\" data-module-version=\"1.0.0\" data-module-instance=\"default\">\n<ul>\n<li>Benchmark has raised its price target for MicroStrategy&#8217;s stock from $215 to $245.<\/li>\n<li>Analyst Mark Palmer argued the value of the company&#8217;s bitcoin holdings and its software business will continue to increase.<\/li>\n<li>He also believes that the company&#8217;s high stock price is justified as it provides more value than just holding massive amounts of bitcoin.<\/li>\n<\/ul>\n<hr>\n<p>Bears on MicroStrategy\u2019s (MSTR) high stock price thanks to its perky valuation compared to the amount of its bitcoin (BTC) holdings are overlooking the company\u2019s \u201cunique\u201d shareholder value, investment banking firm Benchmark said in a research report on Friday.<\/p>\n<p>\u201cWe believe the ability of MSTR to generate compounding yield on its bitcoin holdings, using what management describes as \u201cintelligent leverage,\u201d differentiates its stock from alternative means of gaining exposure to bitcoin such as spot bitcoin ETFs,\u201d Benchmark analyst Mark Palmer wrote.<\/p>\n<p>Already bullish on the stock, Palmer reiterated his buy rating and lifted his price target to $245 from $215. Alongside a rise in the price of bitcoin to $68,400, MSTR shares are higher by 6.6% Friday to $206.19.<\/p>\n<p>Led by Executive Chairman Michael Saylor, the stock of self-described Bitcoin Development Company currently trade at a 2.4X premium to the value of its bitcoin holdings, with some traders thusly believing that holding the equity instead of BTC itself (or the spot ETFs) is a bad move.<\/p>\n<p>MicroStrategy\u2019s net asset value (NAV) is calculated by dividing MSTR&#8217;s market capitalization by the value of its bitcoin stack. The NAV premium recently touched a new high of 2.5 times its bitcoin holdings, with a company market cap north of $41 billion against bitcoin holdings of around $17 billion.<\/p>\n<p>Benchmark believes MicroStrategy\u2019s business model justifies the premium to NAV and that traders should focus on the company\u2019s BTC Yield. Introduced by Saylor and team earlier this year, Bitcoin Yield tracks the effectiveness of bitcoin investments by measuring the percentage change over time of the ratio between MSTR\u2019s bitcoin holdings and its fully diluted share count. The Bitcoin Yield stood at 17.8% through September 19 compared to 1.8% and 7.3% in 2022 and 2023, respectively, according to Benchmark\u2019s data.<\/p>\n<\/div>\n<div data-module-name=\"authors-block\" data-module-version=\"1.0.0\" data-module-instance=\"default\">\n<div>\n<h5><a href=\"http:\/\/www.coindesk.com\/author\/helene-braun\">Helene Braun<\/a><\/h5>\n<p>Helene is a New York-based news reporter at CoinDesk, covering news about Wall Street, the rise of the spot bitcoin exchange-traded funds (ETFs) and updates on crypto exchanges. She is also the co-host of CoinDesk&#8217;s Markets Daily show on Spotify and Youtube. Helene is a recent graduate of New York University&#8217;s business and economic reporting program and has appeared on CBS News, YahooFinance and Nasdaq TradeTalks. She holds BTC and ETH.<\/p>\n<p><a target=\"_blank\" title=\"X\" href=\"https:\/\/x.com\/HeleneBraunn\"><svg width=\"16\" height=\"16\" viewBox=\"0 0 1400 1027\" fill=\"none\" aria-labelledby=\"twitter-svg-a11y-label-id\"><title id=\"twitter-svg-a11y-label-id\">X icon<\/title><path d=\"M714.163 519.284L1160.89 0H1055.03L667.137 450.887L357.328 0H0L468.492 681.821L0 1226.37H105.866L515.491 750.218L842.672 1226.37H1200L714.137 519.284H714.163ZM569.165 687.828L521.697 619.934L144.011 79.6944H306.615L611.412 515.685L658.88 583.579L1055.08 1150.3H892.476L569.165 687.854V687.828Z\" fill=\"#262626\" \/><\/svg><\/a><a target=\"_blank\" title=\"LinkedIn\" href=\"https:\/\/www.linkedin.com\/in\/helenebraunn\"><svg width=\"24\" height=\"24\" fill=\"none\" viewBox=\"0 0 24 24\"><path d=\"M2.25362 9.21772H6.53986V22.1164H2.25362V9.21772ZM4.42543 3C2.95843 3 2 3.9631 2 5.22719C2 6.46529 2.93038 7.45638 4.36933 7.45638H4.39667C5.89171 7.45638 6.82276 6.46524 6.82276 5.22719C6.79471 3.9631 5.89176 3 4.42543 3ZM17.0638 8.91471C14.7886 8.91471 13.7693 10.1661 13.2007 11.0438V9.21772H8.91314C8.9699 10.4278 8.91314 22.1164 8.91314 22.1164H13.2007V14.9129C13.2007 14.527 13.2287 14.1427 13.3415 13.8663C13.652 13.0961 14.3574 12.2985 15.5407 12.2985C17.0931 12.2985 17.7131 13.4819 17.7131 15.2151V22.1163H22V14.72C22 10.7581 19.8856 8.91471 17.0638 8.91471Z\" fill=\"#262626\" \/><\/svg><\/a><a target=\"_blank\" title=\"Email\" href=\"http:\/\/www.coindesk.com\/mailto:he****@******sk.com\" data-original-string=\"iJMT7zKeJjqWbaj\/nSXq6w==7f40H1vMsJ7aFq+OEF4fYP21UASXlx6LE1ig\/BOUSoivlw=\" title=\"This contact has been encoded by Anti-Spam by CleanTalk. Click to decode. To finish the decoding make sure that JavaScript is enabled in your browser.\"><svg width=\"16\" height=\"16\" fill=\"#262626\" version=\"1.1\" id=\"Capa_1\" viewBox=\"0 0 75.294 75.294\"><g><path d=\"M66.097,12.089h-56.9C4.126,12.089,0,16.215,0,21.286v32.722c0,5.071,4.126,9.197,9.197,9.197h56.9   c5.071,0,9.197-4.126,9.197-9.197V21.287C75.295,16.215,71.169,12.089,66.097,12.089z M61.603,18.089L37.647,33.523L13.691,18.089   H61.603z M66.097,57.206h-56.9C7.434,57.206,6,55.771,6,54.009V21.457l29.796,19.16c0.04,0.025,0.083,0.042,0.124,0.065   c0.043,0.024,0.087,0.047,0.131,0.069c0.231,0.119,0.469,0.215,0.712,0.278c0.025,0.007,0.05,0.01,0.075,0.016   c0.267,0.063,0.537,0.102,0.807,0.102c0.001,0,0.002,0,0.002,0c0.002,0,0.003,0,0.004,0c0.27,0,0.54-0.038,0.807-0.102   c0.025-0.006,0.05-0.009,0.075-0.016c0.243-0.063,0.48-0.159,0.712-0.278c0.044-0.022,0.088-0.045,0.131-0.069   c0.041-0.023,0.084-0.04,0.124-0.065l29.796-19.16v32.551C69.295,55.771,67.86,57.206,66.097,57.206z\" \/><\/g><\/svg><\/a><\/p>\n<\/div>\n<p><a href=\"http:\/\/www.coindesk.com\/author\/helene-braun\"><img title=\"bitcoins\" alt=\"bitcoins Picture of CoinDesk author Helene Braun\" loading=\"lazy\" width=\"199\" height=\"199\" decoding=\"async\" data-nimg=\"1\"  src=\"http:\/\/www.coindesk.com\/_next\/image?url=https%3A%2F%2Fcdn.sanity.io%2Fimages%2Fs3y3vcno%2Fproduction%2F70c6c6f573b9caeabcf82c73298d4eef28e33130-199x199.png%3Fw%3D64%26h%3D64%26fit%3Dcrop%26crop%3Dfocalpoint%26auto%3Dformat&#038;w=640&#038;q=75&#038;dpl=dpl_6nTkWZ5AkCDPLbWLCndoZVFqHi7u\"><\/a><\/p>\n<\/div>\n<p> Helene Braun <a href=\"https:\/\/www.coindesk.com\/markets\/2024\/10\/18\/microstrategys-nav-premium-shouldnt-be-feared-says-benchmark-raising-price-target-to-245\/?utm_medium=referral&#038;utm_source=rss&#038;utm_campaign=headlines\" class=\"button purchase\" rel=\"nofollow noopener\" target=\"_blank\">Read More<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The company&#8217;s use of &#8220;intelligent leverage&#8221; differentiates its stock from other means of gaining exposure to bitcoin, argued analyst Mark Palmer. Updated Oct 18, 2024, 3:29\u202fp.m. UTC Published Oct 18, 2024, 3:26\u202fp.m. UTC Benchmark has raised its price target for MicroStrategy&#8217;s stock from $215 to $245. Analyst Mark Palmer argued the value of the company&#8217;s<\/p>\n","protected":false},"author":1,"featured_media":814438,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[95076,29186],"tags":[11476],"class_list":{"0":"post-814437","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-microstrategys","8":"category-premium","9":"tag-bitcoins"},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/814437","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/comments?post=814437"}],"version-history":[{"count":0,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/814437\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media\/814438"}],"wp:attachment":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media?parent=814437"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/categories?post=814437"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/tags?post=814437"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}