MicroStrategy stock could rise on Bitcoin ETF adoption, Ethereum ETF rejection, TD Cowen says.

Michael Saylor’s MicroStrategy stock could be “meaningfully higher” by the end of the year, TD Cowens said, as Bitcoin ETFs are more adopted by institutions and regulators are likely to reject the Ethereum ETF.

One catalyst for Bitcoin prices and MicroStrategy stock could come on May 15, the deadline for institutional investment managers to file Form 13-Fs with the Securities and Exchange Commission (SEC). Analyst Lance Vitanza said in a May 6 note:

If more institutions appear to have purchased Bitcoin exchange-traded funds (ETFs), according to the filing, it would be a sign of increasing institutional acceptance of BTC, Vitanza said.

“#Bitcoin It’s best. There is no second best option.”
–@Sailor#BitcoinforCorporations

— MicroStrategy (@MicroStrategy) May 2, 2024

A second potential trigger is the SEC’s possible rejection of the Ethereum ETF in about a week, which could cause investors to flock to Bitcoin, he said.

Given MicroStrategy’s aggressive accumulation drive, BTCBoth developments could have a positive impact on the prices of major cryptocurrencies and MicroStrategy’s stock price, Vitanza said.

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

“This has us reconsidering the potential upside to our operating business,” the analyst wrote.

MicroStrategy Reports Loss of $53.1 Million in Q1 2024

Vitanza’s positive outlook for MSTR is as follows: MicroStrategy It recorded a net operating loss of $53.1 million in the first quarter of this year. The loss was due to the company’s decision not to adopt new digital asset fair value accounting standards.

Had the company taken advantage of this new standard, MicroStrategy would have benefited significantly from BTC’s strong price valuation.

MSTR is up 89% year-to-date, but Vitanza believes it can still rise further.

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