Investment Bank Starts Coverage of MSTR With a Buy

Investment bank H.C. Wainwright today initiated coverage of  MicroStrategy (MSTR) with a Buy rating and a $480 price target.

According to H.C. Wainwright, MSTR provides a unique opportunity for those looking to benefit from a rally by Bitcoin.

Michael Saylor MSTR

The Investment Bank Is Bullish on MSTR’s Strategy

Noting that the company owns about $49 billion of Bitcoin, H.C. Wainwright reported that MSTR had used these holdings to help it raise more than $25 billion.

The firm has utilized these funds, in turn, to buy  Bitcoin at a faster rate than it has issued shares of its stock. As a result, its net asset value has risen, the investment bank explained.

MSTR’s Other Positive Traits

The company has a “first-mover advantage” when it comes to investing in Bitcoin, and its decision to retain all of the Bitcoin it has purchased has improved its image among crypto fans, according to H.C. Wainwright.

As a consequence of these points, MSTR is quite popular among retail investors, the investment bank stated.

The Recent Price Action of MSTR

In the last month, the stock has jumped 24%, while it has gained 13% in the last three months.

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This article is originally published at Insider Monkey.