Michael Saylor’s strategy has announced aggressive plans to increase its Bitcoin acquisitions, and two Wall Street companies are on board.
Michael Saylor’s risky bet on Bitcoin (BTC) received a green light from the best Wall Street analysts. According to a Coinbase Friday, May 2 report, analysts from Wall Street Benchmark and TD Cowen research companies have approved the aggressive Bitcoin acquisitions of the strategy.
Mark Palmer, analyst of the Benchmark research and investment bank company, noted the advantage of the first engine of the strategy. He explained that the company had managed to considerably increase its Bitcoin holdings, providing for a price target of $ 650 compared to the current price of $ 395 of strategy.
Wall Street analysts share bruise objectives for the strategy
“While the number of companies that have sought to reproduce the Strategment Bitcoin Acquisition Strategy continued to grow quickly … MSTR recalled yesterday a reminder of the extent of its first furniture advantage and how its ability to accelerate its accumulation of Bitcoin continued to increase as its platform has evolved,” said Mark Palmer, Benchmark.
The CEO of Strategy, Michael Saylor, recently announced the company’s plans to use both ordinary actions and debt to considerably increase his Bitcoin assets. The plan would help the company raise $ 84 billion, also divided between debt and share offers.
Although the plans are ambitious, TD Cowen’s analyst launches Vitanza, said he was not out of the question. The current market capitalization of the $ 111 billion strategy increases the credibility of the increase. Vitanza also shared his price target of $ 550.
The strategy currently has 553,555 bitcoins, which represents around 2.5% of the total supply. Although the company’s performance has been strong, often surpassing Bitcoin itself, its lever effect is not without risk.
Although Bitcoin remains stable, the strategy can collect important gains for investors. However, a substantial drop in the BTC price would make the debt of the company unbearable. What is worse, if the strategy was forced to sell part of its BTC to repay its debts, it could have a cascade effect on the Bitcoin markets.
