What happened

Shares of MicroStrategy (NASDAQ:MSTR) closed Tuesday's trading session 12% higher. A generally positive market day was further improved by a bullish report from an analyst better known for his short-selling strategy.

So what

The maker of business intelligence and data analysis software received a rare buy recommendation from Citron Research manager Andrew Left. The recommendation didn't involve a deep analysis of MicroStrategy's software business. Instead, Left views this company as a safe way to bet on rising bitcoin prices.

A green charting arrow points upwards in front of a list of famous cryptocurrency names.

Image source: Getty Images.

Now what

MicroStrategy purchased 38,250 bitcoin tokens in the third quarter. That $425 million investment has already ballooned into a $729 million value at current prices of $19,064 per token. Left argues that MicroStrategy would be worth $700 per share if bitcoin prices soar to $50,000 per token.

Mind you, bitcoin has a long way to go before hitting Left's target price, and we have seen cryptocurrency prices tumble before. MicroStrategy made a bold move when it moved most of its cash reserves into a big bitcoin investment. We'll just have to wait and see how that innovative idea works out in the long run.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.