Two bitcoin drivers are likely to drive MicroStrategy shares higher

Reported on May 7, 2024, TD Cowen analyst Lance Vitanza said that two important bitcoin drivers could drive a rally in MicroStrategy shares. Although MicroStrategy shares have risen 89 percent so far, the software company is on track to "meaningfully" rise again before the end of the year. According to Vitanza, bitcoin prices could surge this month, so could MicroStrategy shares, which hold billions of dollars in bitcoin. Vitanza said MicroStrategy is on track to rise to "meaningful higher levels" by year-end.

In a Monday statement, Vitanza said that Bitcoin (BTC) has significant upside potential this month thanks to two important drivers, while Michael Saylor's MicroStrategy (MSTR) stock could also see significant gains. Gradually moving toward the goal of a "meaningful" rise by the end of the year. Last week, MicroStrategy reported a net operating loss of $53.1 million for the first quarter of 2024, which was the result of taking a $191.6 million digital asset impairment provision. But the company has yet to adopt new fair value accounting rules for digital assets that would allow it to profit hand-in-hand from bitcoin's rally at the start of the year.

Vitanza attended MicroStrategy's 2024 user forum in Las Vegas last week and said customers have given overwhelmingly positive feedback on the company's long-launched legacy software businesses, which existed before Thaler pushed the company to buy billions of dollars in bitcoin. "This has made us rethink the potential upside around our operating business." "He wrote. The company's share price has risen 89% so far, and the stock could also see a meaningful rise due to two major drivers that could drive Bitcoin's price higher.

May 15 is the deadline for institutional investment managers to file Form 13-F with the Securities and Exchange Commission. Analysts said that if the first quarter shows that more companies bought newly approved spot Bitcoin exchange funds, it will indicate that bitcoin has gained more institutional acceptance. Vitanza said another potentially positive event for Bitcoin and therefore MicroStrategy would be the potential rejection of an Ethereum ETF by the SEC, a scenario that many in the industry are preparing for. "This is important because while the fate of Ethereum may remain up in the air until 2025 or beyond, we believe there is a significant amount of capital waiting for a digital winner to be declared; if Bitcoin proves to be the winner, the added demand could be even more pronounced due to the recent Bitcoin halving." "Vitanza said. According to CoinDesk data, bitcoin is up 43% since the beginning of the year and reached a record high of more than $73,000 in March and is currently trading around $63,000.