BTIG, a global provider of investment banking and research services, has hiked its price target for Virginia-based business intelligence firm MicroStrategy (MSTR) to $240. This marks a dramatic increase from its previous price target of $180.

According to BTIG, the implied Bitcoin premium within MicroStrategy's valuation is nearing a record peak.

The company's market cap currently stands at $42.45 billion, with its shares trading at $210 a pop. Its shares have increased by nearly 61% over the last six months. For comparison, the total value of MicroStrategy's Bitcoin holdings stands at $17 billion.

Earlier, BTIG analysts opined that this premium is supported by those investors who might not have the ability to gain exposure to Bitcoin itself or the shares of exchange-traded funds.

Investors do not typically view MicroStrategy as purely a Bitcoin proxy since it is still a profitable company that makes strategic treasury decisions. Moreover, it is common for companies to trade at multiples of their net assets. 

Some investors might believe that the price of Bitcoin is going to substantially increase in the future, which is why MSTR is trading at such a high implied premium. 

Earlier this month, MicroStrategy cofounder Michael Saylor spoke about his ambitious plan to turn the business intelligence firm into a "Bitcoin bank" with a valuation exceeding $1 trillion. 

At the same time, Saylor has acknowledged that his company was "misunderstood," arguing that it should be treated as a real estate development firm that deals with Bitcoin instead of real estate.  

Saylor has predicted that the price of Bitcoin could potentially reach $13 million roughly 20 years from now.