Strategy Stock Skyrockets as Bitcoin Surpasses $80K
Strategy Inc.'s (NASDAQ:MSTR) stock surged over 10% higher on Thursday as Bitcoin (BTC) broke out past the $80,000 level. This significant move is largely due to investors treating Strategy stock as a leveraged equity proxy for Bitcoin because of the company's substantial corporate treasury holdings of the asset.
The Nasdaq has seen an increase of 0.84%, while the S&P 500 has gained 0.49%. However, Bernstein lowered their price forecast on Strategy from $450 to $350 while maintaining an Outperform rating on Wednesday. They cited an updated Bitcoin cycle timeline and faster-than-expected equity dilution from share sales as reasons for this adjustment.
Looking ahead, Bernstein set a bull case of $500,000 for Bitcoin by 2029, driven by currency debasement and rising national debt. In their note, they stated that 'the 40-year era of falling interest rates is over.'