The recent volatility around MicroStrategy’s stock (NASDAQ: MSTR) has kept investors on edge, especially after Michael Saylor’s sudden policy shift regarding equity dilution. Despite this turbulence, XRP lawyer John Deaton remains optimistic, projecting a strong rebound for MSTR with targets surpassing $500. While the stock is currently under heavy selling pressure, analysts believe that robust quarterly results and a potential Bitcoin rally could serve as catalysts for the company’s recovery.
XRP Lawyer’s Bullish Outlook on Bitcoin and MSTR
John Deaton, widely followed in the crypto community for his legal work around XRP, recently shared his bold prediction on Bitcoin’s future trajectory. He believes that Bitcoin (BTC) could surge to between $180,000 and $250,000 within the next year, aligning his forecast with other prominent figures in the industry such as Eric Trump and Anthony Scaramucci.
According to Deaton, such a dramatic upswing in Bitcoin would naturally translate into significant gains for MicroStrategy, whose stock heavily mirrors BTC’s performance. With MSTR currently trading at around $358, Deaton expects the stock to climb well above $500 per share during the next bullish cycle.
I can predict something in the future, related to @MicroStrategy & @saylor, with almost certainty. I believe Bitcoin will increase to $180K-$250K in the next year. That will cause @MicroStrategy stock to 🚀
Today, the stock’s at $358 and will likely exceed $500 a share during… https://t.co/8OQCVX1nY3
— John E Deaton (@JohnEDeaton1) August 24, 2025
However, he also warned of the risks tied to crypto’s cyclical nature. If Bitcoin undergoes a correction of 30–40%, MSTR could experience a sharp reversal, potentially triggering widespread speculation about forced sales or liquidation of the company’s BTC holdings.
Michael Saylor’s U-Turn Sparks Debate
The optimism around MSTR’s long-term outlook comes against the backdrop of controversy. Last week, Michael Saylor faced criticism after backtracking on the company’s mNAV policy related to equity dilution. The shift came as MicroStrategy’s mNAV ratio collapsed from 3.68x in December 2024 to just 1.6x, raising concerns over whether the company can maintain its premium over Bitcoin.
Despite these challenges, MicroStrategy reported a $10 billion net income in Q2, signaling strong financial health. CFO Andrew Phang clarified that the firm would not proceed with stock dilution under the 2.5 mNAV threshold. Still, the unexpected U-turn has fueled debates over the sustainability of Saylor’s aggressive Bitcoin accumulation strategy.
Can MicroStrategy Become Wall Street’s Biggest Firm?
Despite recent underperformance, many analysts remain confident in MicroStrategy’s long-term potential. Tom Lee of Fundstrat recently suggested that the company could emerge as one of the largest publicly traded firms if Bitcoin climbs to the $1 million milestone. Lee argued that MicroStrategy’s valuation would be driven less by traditional earnings and more by the sheer magnitude of its Bitcoin reserves. His bold comparison summed it up perfectly: “Exxon was oil. Strategy is Bitcoin.”
Meanwhile, Strategy Treasurer Shirish Jajodia echoed this sentiment in a recent conversation on the Coin Stories podcast. He noted that while the market may be skeptical now, investors will eventually recognize the strategic value behind the company’s evolving policy and long-term Bitcoin focus.
MSTR Stock Price Outlook: Short-Term Pain, Long-Term Promise
At present, MSTR stock trades near $358, marking a 12% decline over the past month and hitting a four-month low during the recent correction. Analysts caution that the price could still fall toward the $300 level before staging a strong rebound. Encouragingly, the stock already displayed signs of recovery last week, bouncing back from $330 lows to post a 6% gain during Friday’s trading session.
If Bitcoin delivers on the bullish projections, Deaton’s $500 target for MSTR could prove conservative, with the potential for much higher valuations as institutional investors pile into BTC and indirectly into MicroStrategy’s stock.
