MicroStrategy Share Price May Rise On Bitcoin ETF Adoption, Ethereum ETF Rejection, TD Cowen Says

The
share
price
of
Michael
Saylor’s

MicroStrategy
may
rise
”meaningfully
higher”
by
the
end
of
this
year
due
to
greater
institutional
adoption
of
Bitcoin
ETFs
and
the
likely
rejection
of
Ethereum
ETFs
by
regulators,
TD
Cowens
said.

One
catalyst
for
the
Bitcoin
price,
and
thus
MicroStrategy
shares,
could
come
on
May
15,
the
deadline
for
institutional
investment
managers
to
file
form
13-F
with
the
Securities
and
Exchange
Commission
(SEC),

analyst
Lance
Vitanza
said
in
a
May
6
note.

If
the
filings
show
more
institutions
have
purchased
Bitcoin
ETFs
(exchange-traded
funds),
it
will
signal
an
increase
in
institutional
acceptance
of
BTC,
Vitanza
said. 

“#Bitcoin
is
the
best.
There
is
no
second
best.”
–@saylor#BitcoinforCorporations

—
MicroStrategy
(@MicroStrategy)

May
2,
2024

A
second
potential
trigger
is
the
likely
rejection
by
the
SEC
of
Ethereum
ETFs
about
a
week
later,
which
could
also
send
investors
flocking
to
Bitcoin,
he
said.

Given
MicroStrategy’s
aggressive
accumulation
drive
of


BTC,
both
developments
could
have
a
positive
impact
on
the
leading
crypto’s
price,
and
MicroStrategy’s
share
price,
Vitanza
said.

After
attending
MicroStrategy’s
World
2024
user
forum
in
Las
Vegas
last
week,
Vitanza
also
said
that
customers
had
a
lot
of
positive
feedback
regarding
the
company’s
original
software
business.

“This
is
causing
us
to
rethink
the
potential
upside
around
the
operating
business,”
the
analyst
wrote.

MicroStrategy
Reports
$53.1
Million
Loss
For
Q1
2024

Vitanza’s
positive
outlook
for
MSTR
comes
after


MicroStrategy

reported
a
net
operating
loss
of
$53.1
million
for
the
first
quarter
of
this
year.
The
reason
for
the
loss
was
the
company’s
decision
to
not
adopt
a
new
digital
asset
fair
value
accounting
standard. 

Had
the
company
utilized
this
new
standard,
MicroStrategy
would
have
posted
a
sizable
profit
from
BTC’s
strong
price
appreciation.

MSTR
is
up
89%
year-to-date,
but
could
still
climb
higher,
Vitanza
believes.

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