MicroStrategy up as Bernstein initiates with "outperform", sees stock doubling
** Shares of MicroStrategy MSTR.O up 1.7% at $1,508.52 premarket after Bernstein starts coverage at "outperform" on co's strong bitcoin BTC= buying strategy
** Brokerage sets PT at Street-high $2,890, per LSEG, implying 95% upside to stock's last close
** Founder and chairman Michael Saylor "has become synonymous with brand Bitcoin and has positioned MSTR as a leading Bitcoin company, attracting at-scale capital (both debt and equity) for an active Bitcoin acquisition strategy," Bernstein analyst team led by Gautam Chhugani wrote in note
** Co positions itself as an "active-leveraged Bitcoin strategy vs. passive spot ETFs," Bernstein said, noting over the last 4 years MSTR's strategy has delivered a higher Bitcoin per equity share
** Bernstein revised BTC price forecast to cycle-high of $200K by 2025 (up from $150K), led by unprecedented BTC demand from spot ETFs and due to cryptocurrency supply constraints
** Analysts estimate BTC could reach $500K by 2029 and $1 mln by 2033
** MSTR's long term convertible debt strategy allows it enough time to gain from potential BTC upside, with limited liquidation risk to cryptocurrency on its balance sheet, the report said
** MSTR currently holds 214,400 bitcoins worth around $14.4 bln with BTC trading around $67K
** Co on Thurs launched $500 mln convertible notes offering to amass more bitcoin
(Lance Tupper is a Reuters market analyst. The views expressed are his own)
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