MicroStrategy stock jumps on bitcoin recovery, William Blair's bullish take

MicroStrategy (NASDAQ:MSTR) shares are gapping up around 18% in Friday premarket trading, erasing losses from the previous session, as bitcoin (BTC-USD) regains some ground following immense selling pressure in recent days. Still, MicroStrategy (MSTR) stock is off nearly 70% YTD as investors express concern over its large bitcoin (BTC-USD) stash, as well as its recently issued 2025 secured term loan. "Despite the decline, we believe MicroStrategy will be able to comfortably support its interest payments and maintain sufficient liquidity to cover debt covenant," said William Blair analyst Kamil Mielczarek. Recall MSTR's Q1 earnings were highlighted by elevated expenses as well as continued digital asset impairment losses, as bitcoin (BTC-USD) falls around 50% from its all-time high in Nov. 2021. Meanwhile, SA's Quant Rating in the beginning of April had screened MSTR at high risk of performing badly given negative EPS revisions. In the beginning of May, BTIG reiterated its Buy on MicroStrategy and forecasted 197% upside.