Benchmark analyst Mark Palmer has given MicroStrategy a Buy rating and raised the price target from $300 to $450. This comes as the company plans to offer $1.75 billion in 0% convertible senior notes due in 2029.
MicroStrategy Inc (MSTR) shares are on the rise. The increase in the price target follows the company’s announcement about buying more Bitcoin (BTC/USD).
On Tuesday, Palmer confirmed his Buy rating for MicroStrategy and adjusted the price target. This change aligns with other analysts who have also updated their targets after the company reported its third-quarter results and announced plans to raise $42 billion over the next three years to continue purchasing Bitcoin.
Late Monday, MicroStrategy revealed its plan for a private offering of $1.75 billion in convertible senior notes. These notes will be available to qualified institutional buyers, and there’s an option for initial purchasers to buy an extra $250 million worth of notes within three days.
MicroStrategy intends to use the proceeds from this offering to acquire more Bitcoin.
This announcement follows MicroStrategy's recent purchase of about 51,780 Bitcoin for $4.6 billion in cash between November 11 and November 17. As of November 17, the company holds a total of 331,200 Bitcoin, with an average purchase price of around $49,874 per coin.
In terms of stock performance, MicroStrategy shares jumped about 13% on Monday. They have surged more than 500% year-to-date. As of Tuesday, MicroStrategy shares were up 0.91%, trading at $388.29, according to Benzinga Pro.