MicroStrategy Stock Soars on Bitcoin Exposure and Premium Despite Critics

BTIG raised its MicroStrategy price target to $1,800 from $780 based on the company's large bitcoin exposure and investors' willingness to pay a premium for that exposure.

MicroStrategy shares are up 155% year-to-date, driven by bitcoin's 50% rally and the rising implied premium of the company's bitcoin holdings.

Investors have shown support for MicroStrategy's high implied bitcoin premium in valuation analyses. BTIG says this premium is elevated but investors seem willing to pay it.

MicroStrategy is expected to benefit from upcoming bitcoin catalysts like the halving event later this month when miner rewards will be cut in half.

Prominent short seller Kerrisdale Capital released a report outlining why they think MicroStrategy's shares are overvalued relative to its actual bitcoin holdings.