MicroStrategy Stock Price in 5 Years: Where Will MSTR Stand by 2029?

MicroStrategy has made headlines for its unwavering commitment to Bitcoin. Under the leadership of Michael Saylor, the firm has transformed itself into one of the world’s largest corporate holders of Bitcoin.

But what lies ahead for the biggest holder of Bitcoin in the world? Let’s see what analysts think MSTR’s stock value will be in the next five years.

MicroStrategy Expands Bitcoin Portfolio

MicroStrategy reported a net loss of $102.6 million, contrasting with an income of $22.2 million in the same period. Despite this financial setback, the firm made a bold move by purchasing 12,222 Bitcoins for an astonishing $805 million, boosting its total Bitcoin holdings to 226,500 BTC, valued at approximately $14.7 billion.

Can MicroStrategy Stock Price Really Outperform Bitcoin?—CCN Reports

The company anticipates around $45 million in interest expenses and $20 million in cash taxes and expects to net roughly $82 million before taxes. Notably, MicroStrategy also raised $2 billion by issuing convertible notes this year, with proceeds directed toward paying interest expenses and taxes.

The decline in revenue can be attributed to the firm’s primary focus on acquiring Bitcoin, a strategy that doesn’t generate traditional revenue and raises concerns about future cash flows.

It’s important to note that the value of Bitcoin nearly doubled earlier this year, significantly increasing the worth of MicroStrategy’s holdings to $14 billion.

However, following the August global market crash, MicroStrategy’s holdings were worth $13.7 billion.

Over $15 Billion In Bitcoin

On June 20, 2024, MicroStrategy Chairman Michael Saylor announced the company’s acquisition of 11,931 Bitcoins for approximately $786 million, continuing its aggressive Bitcoin accumulation strategy.

This purchase brings the firm’s total holdings to 226,500 Bitcoins. MicroStrategy, which began accumulating Bitcoin in 2020 as a primary reserve asset, has now amassed over 1% of the entire BTC supply.

The company also plans to issue $500 million in convertible senior notes maturing in 2032, with proceeds earmarked for further Bitcoin purchases and general corporate purposes.

2023 Notable Surge

MicroStrategy’s stock performance in 2023 was exceptional, soaring by over 300%. This remarkable growth was primarily attributed to the company’s substantial Bitcoin holdings, which have increased in value alongside the broader Bitcoin market.

The company’s decision to invest heavily in bitcoin was initially met with skepticism from some analysts and investors. However, the surge in Bitcoin prices in 2023 has validated MicroStrategy’s strategy and rewarded those who invested in the company’s stock.

In addition to the Bitcoin gains, MicroStrategy’s software business also showed signs of improvement in 2023.

The company’s subscription revenue grew by 38% year over year. This helped to offset declines in product licenses and support revenues. Overall, MicroStrategy’s financial performance in 2023 was strong and the company may continue its growth in the future.

This remarkable performance has made MicroStrategy one of the biggest gainers in the U.S. equity market in 2023.

The company’s success is due to its innovative approach to business and its willingness to take risks.

While the stock’s future performance may depend on the further growth of the Bitcoin market, MicroStrategy’s strong fundamentals and diversified business model suggest that the company may continue its success in the years to come.

Is MicroStrategy Profitable?

MicroStrategy reported  a 7% year-over-year decline in total revenues in the second quarter. This was driven by a significant shift toward cloud service subscriptions.

Despite this dip, the company announced a 10-for-1 stock split and a new $2 billion ATM equity offering. This positions the company for future growth and enhanced capital flexibility.

The firm currently holds 226,500 Bitcoins, valued at $15 billion, and is targeting a 4% to 8% annual yield from its Bitcoin holdings over the next three years.

In Q2, total revenues dropped to $111.4 million, with product license revenues falling by 40% and support revenues declining by 7%.

However, subscription services have grown to represent 22% of total revenues, driven by record levels of cloud migrations during the quarter.

To fund its aggressive Bitcoin acquisition strategy, MicroStrategy issued $4.4 billion in debt. It also plans to adopt new FASB accounting rules for its Bitcoin holdings.

The company emphasizes its focus on outperforming spot Bitcoin ETPs and generating shareholder value through a combination of Bitcoin investment and technological innovation.

Looking ahead, MicroStrategy aims to achieve  a 4% to 8% annual yield on its Bitcoin holdings over the next three years.

The company also expects the increasing revenue from subscription services to offset the decline in product licenses and support revenues as it transitions to the cloud.

The new $2 billion equity offering will further support these strategic initiatives.

MSTR In 2024

In the past three months, six Wall Street analysts  have provided 12-month price targets for MicroStrategy, with an average target of $2,206.67.

The price targets range from a high of $2,890.00 to a low of $1,800.00, reflecting a potential 1,522.67% increase from the last recorded price of $135.99.

Analysts  have generally issued a “Buy” recommendation, with an average target price of $201.61 based on eight ratings.

The company’s fiscal year report is expected in December 2024. Last quarter, MicroStrategy reported earnings of -$5.74, a sharp decline from $22.70 in the same quarter last year.

The current quarter’s earnings estimate is -$0.12, with the full-year estimate projected at -$0.56. The estimate for the next fiscal year is slightly better at -$0.37.

The median price-to-earnings ratio (PE) estimate for the current year is unavailable. This reflects the uncertainty surrounding the company’s near-term financial performance.

However, it’s worth noting that the company is garnering institutional adoption.

Recently, South Korea’s National Pension Service (NPS), the world’s third-largest pension fund, invested $33.7 million in MicroStrategy to indirectly gain exposure to the crypto market.

It’s possible this move could set the stage for a trickle-down effect, with other traditional funds and firms potentially eyeing MSTR as a convenient way to join the crypto craze and ride the market’s growth wave

What Will MSTR Price Be In the Next Five Years?

It’s difficult to predict what the MSTR price will be in five years, especially because the stock performance is tied to Bitcoin. And we know how unpredictable cryptocurrencies are.

Anyway, there are several factors that could affect MSTR’s stock price in the next five years. These include:

The Price Of Bitcoin

The price of Bitcoin is the most important factor affecting MSTR’s stock price. If Bitcoin prices continue to rise, MSTR’s stock price is also likely to rise. However, if Bitcoin prices fall, MSTR’s stock price is likely to fall as well.

MicroStrategy’s Ability To Execute Its Business Strategy

MicroStrategy is not just a Bitcoin investment company. It is also a business intelligence company. If MicroStrategy can grow its business intelligence business, this could help offset any declines in the price of Bitcoin.

The Overall Cryptocurrency Market

The cryptocurrency market is still in its early stages of development. As the market matures, Bitcoin and other cryptocurrencies may become more widely adopted. This could lead to a sustained increase in the price of Bitcoin, which would benefit MSTR’s stock price.

Regulatory Changes

Governments worldwide are still grappling with how to regulate cryptocurrencies. If governments implement regulations that make it more difficult to buy, sell, or hold cryptocurrencies, this could hurt the price of Bitcoin and MSTR’s stock.

The majority of analysts predict the price of MSTR could rise to $1,37,60 in 2028, a 139% increase from the current value. The stock may also hit a record of $1,954.49 in the first year of the next decade. But it all depends on Bitcoin.