American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Politics

Why this Bitcoin proxy is a ‘buy’ even if the Fed holds rates steady today

by admin January 30, 2025
January 30, 2025
Why this Bitcoin proxy is a ‘buy’ even if the Fed holds rates steady today

The US Federal Reserve is broadly expected to leave its key rate unchanged as it announces its policy decision on Wednesday, January 29th.

Rate cuts tend to be meaningfully positive for Bitcoin as they make bonds and saving accounts less attractive, making investors look for better returns in the risk-on assets like cryptocurrencies.

Still, a Mizuho analyst remains convinced that MicroStrategy Inc (NASDAQ: MSTR) – a computer technology company that’s transformed itself into a Bitcoin proxy is a “buy” even if the Fed doesn’t lower interest rates today.

Note that MicroStrategy stock has already close to tripled over the past five months.  

MicroStrategy stock could rally another 52%

Dan Dolev assumed coverage of MicroStrategy Inc. with an “outperform” rating on Wednesday.

His $515 price target indicates potential for another 52% upside from current levels.

“Anticipation that MSTR will continue buying Bitcoin, coupled with expectations of Bitcoin price appreciation, grants MSTR a premium to the underlying value of its Bitcoin holdings,” the analyst told clients in a note today.

Mizuho is bullish on MicroStrategy stock as it expects Bitcoin to grow at a compound annualized rate of up to 30%, albeit with significant volatility, through the end of 2027.

At writing, BTC sits just above the $100,000 level – with many experts, including Geoffrey Kendrick of Standard Chartered, seeing it hitting $200,000 by the end of this year.

MSTR is more attractive under the Trump administration

Dan Dolev is confident that limited supply will help Bitcoin command a higher price moving forward.

Additionally, the Mizuho analyst expects the world’s largest cryptocurrency by market cap to benefit as President Trump continues to deliver on his promise of a pro-crypto government.

While Bitcoin itself lacks intrinsic value, rising global adoption, slowing rate of Bitcoin supply growth, and favourable political environment support price appreciation.

The corporate structure that enables MSTR to issue equity and convertible bonds to immediately grow its Bitcoin holdings makes MicroStrategy stock all the more attractive to own at writing, he added.

How many Bitcoins does MicroStrategy hold?

Mizuho’s bullish call on MicroStrategy shares arrives only days before the company is scheduled to report its financial results for the fourth quarter.

The consensus is for it to lose 12.5 cents a share versus 56 cents per share of earnings in the same quarter last year.

Still, Mizuho is not the only investment firm that’s positive on MSTR.

Compass Point also recommends buying MicroStrategy stock ahead of the Fed’s rate decision as well as the company’s earnings and points to a potential upside of $550 over the next 12 months.

Earlier this week, the Nasdaq-listed firm expanded its holdings by another 10,107 Bitcoin.

In total, MicroStrategy now owns a whopping 471,107 Bitcoin, according to its chairman Michael Saylor’s recent tweet.

The post Why this Bitcoin proxy is a ‘buy’ even if the Fed holds rates steady today appeared first on Invezz

0
FacebookTwitterGoogle +Pinterest
previous post
Federal Reserve takes a pause, keeps interest rates unchanged
next post
Trump’s approval rating drops following flurry of executive orders, poll shows

Related Posts

Biden, not Special Counsel Hur, brought up son’s...

February 15, 2024

As LVMH extends Arnault’s reign, succession concerns still...

April 19, 2025

PepeX vs Dogecoin: Why PepeX is a better...

April 19, 2025

Is globalization at a crossroads? Nationalism and protectionism...

April 19, 2025

Russia threatens strikes on British military installations, plans...

May 8, 2024

Populists shut out of European political systems that...

July 21, 2024

Kids Online Safety Act reintroduced in Senate expected...

February 17, 2024

‘Stop caving to the woke mobs’: GOP ramps...

May 5, 2024

Senate clears hurdle to passing aid package for...

February 12, 2024

Jill Biden ‘stunned’ Joe’s family during health scare,...

February 26, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • India-UK sign historic free trade deal: here’s all you need to know

      July 24, 2025
    • Talen Energy surges 25% to ATH after strategic natural gas power plant acquisition

      July 20, 2025
    • US visa bans on Brazilian judges spark diplomatic rift, cloud economic ties

      July 20, 2025
    • Trump sues Murdoch and News Corp over Wall Street Journal’s Epstein report

      July 20, 2025
    • The new global demographic challenge: not too many, but too few

      July 20, 2025

    Categories

    • Business (3,474)
    • Investing (2,655)
    • Latest News (2,022)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved