The world’s largest cryptocurrency, Bitcoin (BTCUSD), is once again sliding as geopolitical tensions take center stage. The latest spike in oil prices has led to a decline in the broader crypto market. However, crypto bulls still remain positive on Bitcoin’s trajectory.
B.Riley Securities analysts initiated coverage of the Bitcoin treasury company, Strategy (MSTR), also known as MicroStrategy, with a “Buy” rating and a $175 price target, implying 26.5% upside from current levels.
B.Riley analysts noted that Strategy has a differentiated capital structure, a dedicated cash reserve, and a responsible approach to BTC accumulation, which makes it well-equipped to navigate the current environment.
Against this backdrop, we take a closer look at Strategy.
Headquartered in Tysons Corner, Virginia, Strategy specializes in business intelligence software and mobile applications that enable data analytics for informed decision-making. Its core operations focus on delivering analytics platforms to governments, retailers, banks, and industries like technology, healthcare, and telecommunications.
The company underwent a major transformation, rebranding from MicroStrategy and evolving into the world’s first prominent Bitcoin treasury firm, holding substantial cryptocurrency reserves as a core strategy while maintaining its software roots. The company has a market capitalization of $46.2 billion.
As Bitcoin struggles, Strategy’s stock, due to its exposure to the cryptocurrency, has also followed suit. Over the past 52 weeks, Strategy’s stock has declined by 48.48%. The stock is also down 10.97% year-to-date (YTD). The stock reached a 52-week high of $457.22 in July 2025, but is down 70% from that level, while it reached a 52-week low of $104.17 on Feb. 5, but is up 31.8% from that level.
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The selloff has brought down Strategy’s valuation. On a forward-adjusted basis, its price-to-earnings ratio of 2.72x is lower than the industry average of 21.76x.
On Feb. 5, Strategy reported its fourth-quarter results for fiscal 2025. The company reported a total revenue of $122.99 million for Q4. It achieved a full-year 2025 BTC Yield of 22.8%, aligning with the full-year 2025 target range of 22.0% to 26.0%. For the full-year 2025, Strategy recorded a Bitcoin gain of $8.90 billion, based on a price of about $87,515 at Dec. 31, 2025. This fell within the updated target range of $8.40 billion to $12.80 billion.
Last year was a landmark year for Bitcoin adoption by corporates as fair value accounting for Bitcoin was implemented, the confirmation that unrealized gains on Bitcoin are exempt from CAMT taxation, and the reinstatement of the S&P credit rating. Against this backdrop, Strategy launched its Digital Credit platform to reduce crypto volatility and established a $2.25 billion dollar reserve that provides more than 2.5 years of coverage to support its dividend obligations.
Strategy continues to build on its Bitcoin pivot, as the company continues to purchase Bitcoin. It last purchased 17,994 Bitcoins on March 9, bringing its total Bitcoin holdings to 738,731. For Q4, Strategy reported a loss per share of $42.93. For the current quarter, Wall Street analysts expect Strategy’s loss per share to narrow by 79.3% annually.
Apart from the positive ratings initiation from B.Riley analysts, other Wall Street analysts have also given Strategy their vote of confidence. This month, BTIG analyst Andrew Harte reiterated his “Buy” rating for MSTR and maintained the price target at $250, reflecting a steady outlook for the stock.
Last month, analysts at Mizuho maintained their “Outperform” rating on Strategy’s stock, but reduced the price target from $403 to $320. The updated price target reflects weaker Bitcoin prices. On the other hand, in the same month, H.C. Wainwright analysts maintained a “Buy” rating on the stock and raised the price target from $500 to $540, following the company’s Q4 results, citing Strategy’s ability to outperform Bitcoin through consistent “Bitcoin per share” gains.
In January, analysts at Cantor Fitzgerald initiated coverage on Strategy’s stock with a bullish “Buy” rating and a $213 price target. The firm stated that it remains confident in Bitcoin’s prospects, as institutional adoption continues, which positions MSTR favorably.
Strategy has become a popular name on Wall Street, with analysts giving it a consensus “Strong Buy” rating overall. Of the 17 analysts rating the stock, a majority of 15 analysts have rated it a “Strong Buy,” one analyst suggests a “Moderate Buy,” and one analyst has given a “Hold” rating. The consensus price target of $376.53 represents a 174.5% upside from current levels. The Street-high price target of $705 indicates a 414% upside.
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On the date of publication, Anushka Dutta did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com
