Cantor Fitzgerald has initiated coverage on MicroStrategy (NASDAQ:MSTR), the largest corporate holder of Bitcoin (BTC-USD), assigning an Overweight rating. This decision is based on a bullish outlook regarding the growing demand for Bitcoin and its scarcity compared to traditional fiat currencies.
As of the end of Q2, MicroStrategy boasts a staggering 226,331 Bitcoin, which constitutes 1.1% of the total supply of 21 million Bitcoin that will ever be mined.
Cantor noted, "Unlike the dollar, which depreciates over time, Bitcoin's value is expected to appreciate. This is due to its declining annual supply increase, culminating in the last Bitcoin being mined in 2140."
The firm also highlighted a burgeoning ecosystem surrounding Bitcoin and the fact that many institutions remain under-invested in it. Additionally, there is speculation that governments may consider adding Bitcoin to their strategic Treasury reserves, further contributing to demand.
Currently, Bitcoin is trading about 20% below its all-time high of $73.1K. Cantor's Overweight rating contrasts with the Hold ratings from Seeking Alpha's Quant system and average analyst ratings, aligning more closely with the Strong Buy consensus from Wall Street analysts.
In premarket trading, MicroStrategy's stock saw a slight increase of 0.2%.
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