Share this article
MicroStrategy's 'Nav Premium' Shouldn't be Feared, Says Benchmark, Raising Price Target to $245
The company's use of "intelligent leverage" differentiates its stock from other means of gaining exposure to bitcoin, argued analyst Mark Palmer.
Updated Oct 18, 2024, 3:29 p.m. Published Oct 18, 2024, 3:26 p.m.
- Benchmark has raised its price target for MicroStrategy's stock from $215 to $245.
- Analyst Mark Palmer argued the value of the company's bitcoin holdings and its software business will continue to increase.
- He also believes that the company's high stock price is justified as it provides more value than just holding massive amounts of bitcoin.
Bears on MicroStrategy’s (MSTR) high stock price thanks to its perky valuation compared to the amount of its bitcoin holdings are overlooking the company’s “unique” shareholder value, investment banking firm Benchmark said in a research report on Friday.
“We believe the ability of MSTR to generate compounding yield on its bitcoin holdings, using what management describes as “intelligent leverage,” differentiates its stock from alternative means of gaining exposure to bitcoin such as spot bitcoin ETFs,” Benchmark analyst Mark Palmer wrote.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
Already bullish on the stock, Palmer reiterated his buy rating and lifted his price target to $245 from $215. Alongside a rise in the price of bitcoin to $68,400, MSTR shares are higher by 6.6% Friday to $206.19.
Led by Executive Chairman Michael Saylor, the stock of self-described Bitcoin Development Company currently trade at a 2.4X premium to the value of its bitcoin holdings, with some traders thusly believing that holding the equity instead of BTC itself (or the spot ETFs) is a bad move.
MicroStrategy’s net asset value (NAV) is calculated by dividing MSTR's market capitalization by the value of its bitcoin stack. The NAV premium recently touched a new high of 2.5 times its bitcoin holdings, with a company market cap north of $41 billion against bitcoin holdings of around $17 billion.
Benchmark believes MicroStrategy’s business model justifies the premium to NAV and that traders should focus on the company’s BTC Yield. Introduced by Saylor and team earlier this year, Bitcoin Yield tracks the effectiveness of bitcoin investments by measuring the percentage change over time of the ratio between MSTR’s bitcoin holdings and its fully diluted share count. The Bitcoin Yield stood at 17.8% through September 19 compared to 1.8% and 7.3% in 2022 and 2023, respectively, according to Benchmark’s data.
More For You
What to know:
- As of October 2025, GoPlus has generated $4.7M in total revenue across its product lines. The GoPlus App is the primary revenue driver, contributing $2.5M (approx. 53%), followed by the SafeToken Protocol at $1.7M.
- GoPlus Intelligence's Token Security API averaged 717 million monthly calls year-to-date in 2025 , with a peak of nearly 1 billion calls in February 2025. Total blockchain-level requests, including transaction simulations, averaged an additional 350 million per month.
- Since its January 2025 launch , the $GPS token has registered over $5B in total spot volume and $10B in derivatives volume in 2025. Monthly spot volume peaked in March 2025 at over $1.1B , while derivatives volume peaked the same month at over $4B.
More For You
SGX's Crypto Futures Draw New Liquidity, Not Diverted Cash, Exchange Boss Says
Institutions are pursuing cash-and-carry arbitrage, not outright bullish plays, Syn said.
What to know:
- SGX's bitcoin and ether perpetual futures are building liquidity incrementally, Michael Syn, president of the Singapore exchange, said.
- Institutions are pursuing cash-and-carry arbitrage, not outright bullish plays, he added.
- The exchange's regulated perpetual futures offer improved risk-management practices, avoiding the high-leverage auto-liquidations common in unregulated markets.
Top Stories
