Strategy Stock Soars: How It Can Endure the Bitcoin Downturn and Prosper.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2d ago
0mins
Should l Buy MSTR?
Source: Barron's
- Stock Performance: The stock experienced an 8% increase ahead of the market opening on Friday.
- Previous Decline: This rise follows a significant drop of 17%, marking its lowest closing price in two years during the previous session.
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Analyst Views on MSTR
Wall Street analysts forecast MSTR stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for MSTR is 453.17 USD with a low forecast of 229.00 USD and a high forecast of 705.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
14 Analyst Rating
12 Buy
2 Hold
0 Sell
Strong Buy
Current: 106.990
Low
229.00
Averages
453.17
High
705.00
Current: 106.990
Low
229.00
Averages
453.17
High
705.00
About MSTR
Strategy Inc., formerly MicroStrategy Incorporated, is a bitcoin treasury and business intelligence company. The Company provides cloud-native, artificial intelligence (AI)-powered enterprise analytics software to thousands of global customers. The Company’s Strategy ONE platform provides access to AI-powered workflows, unlimited data sources, cloud-native technologies, and performance to speed up time from data to action. Strategy One delivers visualization, reporting, and embedded analytics capabilities across retail, banking, technology, manufacturing, insurance, consulting, healthcare, telecommunications, and the public sector. Its Strategy Mosaic is a universal intelligence layer that provides enterprises with consistent definitions and governance across data sources, regardless of where that data resides or which tools access it. The Strategy Mosaic offers data clarity and connection by eliminating trade-offs between flexibility, control, and speed.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Strategy Inc CEO Remains Bullish on Bitcoin's Future
- CEO's Optimistic Outlook: Strategy Inc CEO Phong Le reiterated a long-term bullish view on Bitcoin during a CNBC interview, suggesting it could reach $1 million in seven years despite a 75% drawdown, demonstrating confidence in the market's recovery.
- Stock Price Rebound: Strategy Inc Class A (MSTR) surged 26% to approximately $135 on Friday, although it remains below the long-term trend level of $302, indicating a resurgence of market optimism regarding the company's future performance.
- Strong Financial Position: Le emphasized that the $17 billion accounting loss was not a cash loss, highlighting Strategy's $2.25 billion cash reserve and a leverage ratio of 10-12%, showcasing a robust financial foundation.
- Accounting Rule Changes: With the FASB's approval of new fair-value accounting rules, expected to take effect in 2025, gains and losses from Bitcoin will be more accurately reflected in financial statements, which will enhance future financial transparency and market confidence.
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Bitcoin Recovers as Market Sentiment Remains Bearish
- Bitcoin Recovery: Bitcoin stabilized in the $69,000-$71,000 range over the weekend after dropping below $61,000 on Thursday, indicating potential recovery after a severe sell-off, although trading volume fell by 32% in the last 24 hours, reflecting cautious investor sentiment.
- Ethereum Support Level: Ethereum oscillated between $2,066 and $2,148, with $2,000 acting as a strong support level, suggesting ongoing confidence in the asset, yet the overall market sentiment remains in 'Extreme Fear', which could impact future price movements.
- Market Liquidation: Over $336 million was liquidated from the market in the last 24 hours, with $236 million stemming from bearish short positions, highlighting pessimistic expectations among investors that may lead to further price volatility.
- Declining Open Interest: Bitcoin's open interest fell by 0.94% to $46.07 billion, more than 50% lower than its peak in October, indicating reduced market participation that could affect future liquidity and trading dynamics.
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TD Cowen Maintains $440 Price Target for MSTR Amid Bitcoin Concerns
- Significant Stock Surge: Strategy Inc (NASDAQ:MSTR) shares surged 22% on Friday as TD Cowen maintained a $440 price target, indicating a strong market position despite trading underwater on Bitcoin holdings.
- Financial Resilience: TD Cowen highlighted that Strategy has a cash reserve of $2.25 billion, which can cover nearly 17 months of fixed charges, showcasing the company's ability to withstand a significant downturn in Bitcoin prices.
- Designed Market Volatility: Analysts noted that Strategy's stock is designed to be 1.5 times more volatile than Bitcoin, meaning that while the stock outperforms during Bitcoin price increases, it underperforms during declines, necessitating cautious investor strategies.
- Emerging Digital Credit Engine: Strategy raised over $7 billion in preferred equity in fiscal 2025, indicating that its new “digital credit engine” will provide an alternative funding mechanism, enhancing its competitive edge in the market.
See More
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- Amazon Delivery Milestone: Amazon announced it delivered over 13 billion items globally in 2025, with more than 8 billion items reaching U.S. Prime members the same or next day, a speed enhancement that will further strengthen its competitive position in the e-commerce market.
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US Stocks Surge, Dow Hits All-Time High
- Dow Hits Record High: The Dow Jones Industrial Average surged 2.47% to reach an all-time high, reflecting market optimism about economic recovery, particularly amid strong rebounds in tech and chipmaker stocks.
- Consumer Confidence Rises: The University of Michigan's consumer sentiment index unexpectedly increased to 57.3, surpassing expectations of 55.0, indicating enhanced consumer confidence that could drive future spending.
- Bitcoin Rebounds: Bitcoin surged over 11% from a 1.25-year low, lifting cryptocurrency-exposed stocks and signaling renewed investor interest and confidence in crypto assets.
- Strong Corporate Earnings: Over 79% of S&P 500 companies exceeded earnings expectations, with S&P earnings growth projected at 8.4% for Q4, providing robust support for the market and indicating ongoing improvement in corporate profitability.
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Strategy Inc CEO Remains Bullish on Bitcoin's Future
- CEO's Optimistic Outlook: Strategy Inc CEO Phong Le reiterated a long-term bullish view on Bitcoin during a CNBC interview, suggesting it could reach $1 million in seven years despite a 75% drawdown, demonstrating confidence in the market's recovery.
- Stock Price Rebound: Strategy Inc Class A (MSTR) surged 26% to approximately $135 on Friday, although it remains below the long-term trend level of $302, indicating a resurgence of market optimism regarding the company's future performance.
- Strong Financial Position: Le emphasized that the $17 billion accounting loss was not a cash loss, highlighting Strategy's $2.25 billion cash reserve and a leverage ratio of 10-12%, showcasing a robust financial foundation.
- Accounting Rule Changes: With the FASB's approval of new fair-value accounting rules, expected to take effect in 2025, gains and losses from Bitcoin will be more accurately reflected in financial statements, which will enhance future financial transparency and market confidence.
See More
BUZZ-STRATEGY SEES 5% PREMARKET INCREASE FOLLOWING RESULTS
- Market Reaction: The corrected strategy has led to a 5% gain in the pre-market following the release of results.
- Impact of Results: The results have positively influenced investor sentiment, contributing to the market's upward movement.
See More
Bitcoin Recovers as Market Sentiment Remains Bearish
- Bitcoin Recovery: Bitcoin stabilized in the $69,000-$71,000 range over the weekend after dropping below $61,000 on Thursday, indicating potential recovery after a severe sell-off, although trading volume fell by 32% in the last 24 hours, reflecting cautious investor sentiment.
- Ethereum Support Level: Ethereum oscillated between $2,066 and $2,148, with $2,000 acting as a strong support level, suggesting ongoing confidence in the asset, yet the overall market sentiment remains in 'Extreme Fear', which could impact future price movements.
- Market Liquidation: Over $336 million was liquidated from the market in the last 24 hours, with $236 million stemming from bearish short positions, highlighting pessimistic expectations among investors that may lead to further price volatility.
- Declining Open Interest: Bitcoin's open interest fell by 0.94% to $46.07 billion, more than 50% lower than its peak in October, indicating reduced market participation that could affect future liquidity and trading dynamics.
See More
TD Cowen Maintains $440 Price Target for MSTR Amid Bitcoin Concerns
- Significant Stock Surge: Strategy Inc (NASDAQ:MSTR) shares surged 22% on Friday as TD Cowen maintained a $440 price target, indicating a strong market position despite trading underwater on Bitcoin holdings.
- Financial Resilience: TD Cowen highlighted that Strategy has a cash reserve of $2.25 billion, which can cover nearly 17 months of fixed charges, showcasing the company's ability to withstand a significant downturn in Bitcoin prices.
- Designed Market Volatility: Analysts noted that Strategy's stock is designed to be 1.5 times more volatile than Bitcoin, meaning that while the stock outperforms during Bitcoin price increases, it underperforms during declines, necessitating cautious investor strategies.
- Emerging Digital Credit Engine: Strategy raised over $7 billion in preferred equity in fiscal 2025, indicating that its new “digital credit engine” will provide an alternative funding mechanism, enhancing its competitive edge in the market.
See More
Federal Judge Orders Elon Musk to Testify in USAID Case
- Musk Ordered to Testify: A federal judge has ruled that Elon Musk must testify regarding his role in dismantling USAID, rejecting his legal team's attempt to avoid questioning, which could impact Musk's reputation and future business endeavors.
- Alphabet Beats Earnings Estimates: Alphabet reported fourth-quarter revenue of $113.83 billion, surpassing the Street consensus estimate of $111.31 billion, with earnings per share of $2.82 exceeding expectations of $2.63, indicating strong performance in advertising and cloud services that may drive stock price increases.
- Amazon Delivery Milestone: Amazon announced it delivered over 13 billion items globally in 2025, with more than 8 billion items reaching U.S. Prime members the same or next day, a speed enhancement that will further strengthen its competitive position in the e-commerce market.
- Tesla's New Model Launch: Tesla unveiled a new All-Wheel Drive variant of the Model Y in the U.S. and Puerto Rico following Elon Musk's announcement of discontinuing the Model S and X, which could attract more consumers and enhance market share.
See More
US Stocks Surge, Dow Hits All-Time High
- Dow Hits Record High: The Dow Jones Industrial Average surged 2.47% to reach an all-time high, reflecting market optimism about economic recovery, particularly amid strong rebounds in tech and chipmaker stocks.
- Consumer Confidence Rises: The University of Michigan's consumer sentiment index unexpectedly increased to 57.3, surpassing expectations of 55.0, indicating enhanced consumer confidence that could drive future spending.
- Bitcoin Rebounds: Bitcoin surged over 11% from a 1.25-year low, lifting cryptocurrency-exposed stocks and signaling renewed investor interest and confidence in crypto assets.
- Strong Corporate Earnings: Over 79% of S&P 500 companies exceeded earnings expectations, with S&P earnings growth projected at 8.4% for Q4, providing robust support for the market and indicating ongoing improvement in corporate profitability.
See More
