Monday, September 15, 2025

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MicroStrategy: Canaccord Slashes Price Target To $453

Last night MicroStrategy Inc (NASDAQ: MSTR) reported its first-quarter financial results for 2022. The company saw declining year-over-year revenues, with the first quarter revenues being $119.3 million versus $122.9 million last year. The company’s gross profit also dropped year over year to $93.6 million compared to $100.35 million last year. Total operating expenses came in at $263.56 million, putting the company’s net income at ($178.74) million or an earnings per share of ($11.58).

The company ended the first quarter with $92.67 million in unrestricted cash and cash equivalents. The company also reported $2.9 billion in digital assets. The company said that it ended the quarter with 129,218 bitcoins with an average carrying amount of $22,409. They noted that the company has impaired $1.07 billion since purchasing bitcoin, as the original cost basis was $3.96 billion.

MicroStrategy currently only has 4 analysts covering the stock with an average 12-month price target of US$592, or a 73% upside to the current stock price. Out of the 4 analysts, 3 have strong buy ratings, while a single analyst has a hold rating on the stock. The street high sits at US$950, which represents a 177% upside to the current stock price.

In Canaccord Genuity’s note on the results, they reiterate their buy rating but cut their 12-month price target to US$453 from US$540 saying that the main driver of price action on the stock remains its bitcoin holdings. While writing, “Given our view that BTC is biased higher over time, we cannot but remain bullish on the stock.”

They also believe that the company remains the “most streamlined” play to invest in bitcoin in the equity markets and say that the company has done a good job innovating in its dual strategy of being a proxy to bitcoin and an operating business.

Canaccord likes that MicroStrategy’s operating model is “unencumbered by costs or operating risks associated with other business models focused on the emerging digital assets space.” Meaning that the business does not have the same risk as many other infrastructure providers in the space who also have digital assets on their balance sheets.

They are also hopeful that the company comes around to figuring out how to start monetizing their bitcoin holdings, for which they are hoping to start seeing in 2022.

Canaccord believes that equity investors continue to want exposure to bitcoin and say that MicroStrategy continues to be the best proxy to that, “without the need to invest in futures ETFs, close-ended fund vehicles and ex the operating risk of owning bitcoin mining companies.”

On the results, which Canaccord makes little note of, they say that even though total revenue dropped 3% year over, subscription revenue grew 28% during the same period. While subscription billings grew 18% year over year, they say that they like seeing ” increasingly robust SaaS metrics.” But warn that reported growth could start to see low single-digits in the future as more people switch to the cloud.


Information for this briefing was found via Sedar and Refinitiv. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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