H.C. Wainwright Starts Strategy (MSTR) at Buy

H.C. Wainwright analyst Mike Colonnese initiates coverage on Strategy (NASDAQ: MSTR) with a Buy rating and a price target of $480.00.

The analyst comments "A turbocharger on the best performing global asset of the past decade. We view MSTR as one of the most compelling public equity investments available to investors seeking to gain levered upside exposure to BTC, the best performing asset class of the past decade, and an asset that we believe is poised to rally in 2H25 based upon multiple near-term positive catalysts and our extensive analysis of Bitcoin’s historical four-year price cycles (all of which we highlight in detail in this report). Though we caution investors that shares amplify exposure to BTC price performance on the downside as well, and we are not ruling out the potential for another short-term correction in BTC prices in 2Q given broader macro headwinds. One of the core tenets of our investment thesis, outside our bullish outlook for BTC, is that we believe Strategy’s unique and proven ability to raise equity and debt capital at scale (over $25B raised in the past two quarters) by leveraging the largest corporate BTC reserve in the world (538,200 BTC worth $49B) to accumulate additional coins at a faster pace than it has issued shares, justifies a durable and healthy premium to NAV. Further, investors would be remiss to overlook the value of Strategy’s “first mover” advantage and the credibility management has built by not selling any BTC holdings in recent years (cardinal rule for Bitcoin Maxis), which has attracted a loyal retail shareholder base. We think institutional investors, on the other hand, not only underappreciate the durability of Strategy’s premium to NAV but are also significantly underestimating BTC’s upside potential in 2025 and by extension Strategy’s capacity to raise additional capital to fund incremental BTC purchases. All said, we believe shares are poised to outperform BTC again in 2025."

For an analyst ratings summary and ratings history on Strategy click here. For more ratings news on Strategy click here.

Shares of Strategy closed at $369.25 yesterday.

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