XRP Lawyer Predicts MSTR Stock Could Hit $500 Amid Bitcoin Bull Run

• XRP lawyer John Deaton predicts MSTR stock could hit $500 if Bitcoin reaches $180,000-$250,000 within the next year. 

• Strategy reversed its equity dilution policy and saw its stock drop 12% over the past month to $358. 

• Analysts believe the company could become one of Wall Street’s largest firms if Bitcoin continues its long-term growth trajectory.

Strategy (NASDAQ: MSTR) stock faces significant selling pressure following CEO Michael Saylor’s policy reversal on equity dilution. The company’s shares currently trade at $358, marking a 12% decline over the past month. XRP lawyer John Deaton remains optimistic about the stock’s future performance despite recent headwinds.

Deaton projects Bitcoin could reach between $180,000 and $250,000 within twelve months. This prediction aligns with forecasts from industry figures, including Eric Trump and Anthony Scaramucci. According to Deaton’s analysis, such a Bitcoin surge would likely drive MSTR shares beyond the $500 threshold.

The attorney cautioned that market cycles could reverse with a potential 30-40% Bitcoin correction. This scenario might trigger speculation about forced selling and liquidation rumors surrounding Saylor’s position.

Policy Shift Creates Market Uncertainty

Strategy reported net income of $10 billion during the second quarter. Company CFO Andrew Phang initially announced that the firm would halt stock dilution below 2.5 times the net asset value (mNAV). The company’s mNAV has declined from 3.68x in December 2024 to 1.6x.

Saylor reversed course on the stock issuance policy as MSTR struggled to maintain its Bitcoin premium. This decision drew criticism from investors who viewed the change undermining previous commitments. The stock touched a four-month low before showing signs of recovery.

MSTR shares bounced 6% during Friday’s trading session from the previous week’s low of $330. Analysts anticipate a potential downside to $300 before the stock resumes its upward trajectory.

Wall Street’s Potential Bitcoin Giant

Fundstrat’s Tom Lee believes MicroStrategy could become one of Wall Street’s largest publicly traded companies if Bitcoin reaches $1 million. Lee emphasized that the company’s valuation would depend on Bitcoin holdings rather than traditional earnings metrics.

“Exxon was oil. Strategy is Bitcoin,” Lee stated during a recent interview. This comparison highlights Strategy’s unique position as a Bitcoin proxy in traditional markets.

Strategy Treasurer Shirish Jajodia addressed current skepticism during an appearance on the Coin Stories podcast. Jajodia suggested investors would eventually understand the recent policy changes as market conditions evolve.

The company maintains its focus on Bitcoin accumulation despite market volatility. Strategy holds substantial Bitcoin reserves, positioning itself as a direct beneficiary of cryptocurrency price appreciation.