The world’s largest cryptocurrency, Bitcoin (BTCUSD) is once again taking center stage in geopolitical tensions. The recent spike in oil prices has led to a decline in the broader crypto market. However, crypto bulls still remain positive in Bitcoin’s direction.
Analysts at B.Riley Securities initiated coverage on 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.
Analysts at B.Riley noted that the strategy has a diversified capital base, cash reserves, and a responsible approach to BTC accumulation, which makes it well equipped to handle the current environment.
Against this background, we take a closer look at the strategy.
Headquartered in Tysons Corner, Virginia, Strategy specializes in business intelligence software and mobile applications that enable data analysis for informed decision making. Its core operations focus on providing analytics platforms to governments, retailers, banks, and industries such as technology, healthcare, and telecommunications.
The company underwent a major transformation, rebranding from MicroStrategy and evolving into the world’s first popular Bitcoin treasury company, maintaining significant 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 stocks, due to exposure to cryptocurrencies, have followed suit. Over the past 52 weeks, the strategy stock has declined by 48.48%. The stock is also down 10.97% year-to-date (YTD). The stock hit a 52-week high of $457.22 on July 2025, but is 70% below that level, while it hit a 52-week low of $104.17 on Feb. 5, but is 31.8% above that level.
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Selling has reduced the value of the strategy. On a previously adjusted basis, the price-to-earnings ratio of 2.72x is lower than the industry average of 21.76x.
On February 5, Strategy reported fourth-quarter results for fiscal 2025. The company reported total revenue of $122.99 million for Q4. It achieved a full-year 2025 BTC yield of 22.8%, matching the full-year 2025 target range of 22.0% to 26.0%. For the full year 2025, the strategy recorded a bitcoin gain of $8.90 billion, based on a price of $87,515 on December 31, 2025.
Last year was a landmark year for corporate adoption of Bitcoin as fair value accounting was implemented for Bitcoin, the confirmation that unrealized gains in Bitcoin are exempt from CAMT tax, and the reinstatement of S&P’s credit rating. Against this backdrop, Strategy launched its digital credit platform to mitigate crypto volatility and created a $2.25 billion reserve that provides coverage over 2.5 years to support dividend obligations.
The strategy continues to build on its Bitcoin pivot, as the company continues to buy Bitcoin. It last bought 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 the strategy’s loss per share to decline by 79.3% year over year.
In addition to the initial positive rating by B.Riley analysts, other Wall Street analysts also voted confidence in the strategy. This month, BTIG analyst Andrew Hart reiterated his “buy” rating for MSTR and maintained his price target at $250, reflecting a stable outlook for the stock.
Last month, analysts at Mizuho maintained an “outperform” rating on the strategy’s stock, but lowered the price target to $320 from $403. The updated price target reflects the weak price of Bitcoin. On the other hand, in the same month, HC Wainwright analysts maintained a “buy” rating on the stock and, following the company’s Q4 results, raised the price target from $500 to $540, indicating the strategy’s ability to outperform Bitcoin through continued “Bitcoin per share” gains.
In January, analysts at Cantor Fitzgerald started coverage on Strategy stock with a “buy” rating and a $213 price target. The company said it believes in Bitcoin’s potential, as institutional adoption continues, which positions MSTR well.
The strategy has become a household name on Wall Street, with analysts giving it an overall “strong buy” rating. Out of 17 analysts rating the stock, 15 have given it a “strong buy” rating, one has a “neutral buy” rating, and one has a “hold” rating. The consensus price target of $376.53 represents a 174.5% upside from current levels. The high street price target of $705 indicates a 414% upside.
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As of the date of publication, Anushka Dutta had no position (either directly or indirectly) in any of the secrets mentioned in this article. All information and data in this article is for informational purposes only. This article was originally published on Barchart.com
