Analysts Remain Bullish on Strategy’s Bitcoin Buying Plans

By: bitcoin ethereum news|2025/05/03 09:45:01
0
Share
copy
In brief Analysts remain upbeat on Strategy (MSTR) despite it reporting a per-share decline of $16.49 in Q1. Bernstein and Benchmark both set price targets of $600 per share or more. MSTR closed up 3.35% on Friday at $394.37 per share. Equity analysts from investment firms Benchmark and Bernstein reiterated their buy ratings and lofty price targets for Strategy (MSTR), a day after the company said that it had recorded a loss of $5.9 billion on its Bitcoin holdings in its first quarter of 2025. The analysts highlighted Strategy’s continued strategy to purchase more Bitcoin, which has become its core business after the company pivoted from software development about five years ago. “While the number of companies that have sought to replicate Strategy’s (MSTR) Bitcoin acquisition strategy has continued to grow rapidly, with more than 70 public companies having followed its lead by adding Bitcoin to their balance sheets,” Mark Palmer, Benchmark senior research analyst–fintech and digital assets wrote, “MSTR yesterday issued a reminder of the extent of its first-mover advantage and how its ability to accelerate its accumulation of Bitcoin has continued to increase as its platform has scaled.” On Thursday, Strategy reported a decline of $16.49 per common share in the first quarter of 2025—a result of Bitcoin’s price plunge during the span. The company has faced the same macroeconomic headwinds afflicting crypto and tech firms more widely, yet in Thursday’s earnings call, it expanded on its initiative to acquire more Bitcoin through stock and fixed income vehicles. Strategy, which in 2020 pivoted from software development to focus on accumulating Bitcoin, now owns around 554,000 BTC, valued at roughly $53 billion based on current prices. The company purchased its Bitcoin at an average cost of $68,459, as of April 28. The Tysons Corner, Virginia-based company is in the latter half of an initiative that it announced last October to purchase $42 billion Bitcoin through these methods, and unveiled a new “42/42 Plan to acquire an additional $42 billion in Bitcoin through 2027, Palmer noted. “It intends to raise a total of $84 billion of capital ($42 billion in equity and $42 billion in fixed income) through 2027 to fund Bitcoin purchases,” Palmer noted. “MSTR’s audacious $84 billion capital-raising target includes the $42 billion targeted by its initial plan, which is now 65% complete with ~$14.7 billion remaining.” Benchmark sets a price target of $650 for Strategy shares (MSTR), citing analysis that includes the projected value of the company’s BTC holdings, a 15x multiple of its BTC dollar gain, and the projected value of its software business. Shares of Strategy closed up 3.3% on Friday to trade at $394.37, and have risen more than 26% over the past month, with much of those gains occurring in recent weeks. MSTR has spiked more than 36% year-to-date, and came within a dollar of matching its 2025 peak price on Thursday ahead of the earnings report. Bitcoin was recently trading at about $96,700, roughly flat over the past 24 hours. BTC has climbed 14% over the past month amid an upturn in digital asset markets that recaptured ground lost from January through March. “MSTR now trades at 2.13x its net asset value, a level that we view as attractive given the company’s demonstrated ability to create shareholder value through its treasury operations,” Palmer wrote in repeating his buy rating. Bernstein analysts set a $600 price target for Strategy in their note Friday. The firm spotlighted its addition of $10 billion in Bitcoin and scaling of its “capital program to 42:42 from 21:21.” “We continue to like MSTR as the most scalable Bitcoin vehicle tapping into large institutional pools unable to access Bitcoin/spot ETFs,” the analysts wrote, noting that the company continued to trade at a premium to its Bitcoin net asset value. “We continue to value Strategy using a sum-of-the-parts approach, combining the enterprise value of its software business and its Bitcoin holdings,” Bernstein wrote. Edited by Andrew Hayward Daily Debrief Newsletter Start every day with the top news stories right now, plus original features, a podcast, videos and more. Source: https://decrypt.co/317710/analysts-upbeat-strategy-bitcoin-buying-plans

-- Price

--

You may also like

Why Is Bitcoin Down Today? What the Hawkish FOMC Means for SpaceX, Gold and Nasdaq

Why is Bitcoin down today? A hawkish FOMC pressured crypto and gold, while SpaceX surged to a $2.5 trillion valuation and Nasdaq gained attention. Here's what happened and why traders are looking beyond Bitcoin.

OKX Star analyzes Binance's competitive advantages: when regulation levels the playing field, competition has just begun

OKX founder Star published a lengthy article, systematically analyzing Binance's competitive advantages over the years: regulatory arbitrage, speculative narrative cycles, social media control, and superficial compliance, stating that the essence of these advantages is not product capability, but ra...

Full version of the debut Q&A! Federal Reserve Chairman Waller: Sticking to the 2% inflation target, establishing five special working groups, individual did not submit the dot plot

Federal Reserve Chairman Waller's debut featured a significant slimming statement, the cancellation of forward guidance, refusal to submit the dot plot, and the establishment of five working groups, vowing to uphold the 2% inflation target, which triggered a sharp decline in U.S. stocks and a surge ...

From Disruptor to Shadow Market: The Crypto Market is Becoming a Colony of Traditional Finance

"Coin-stock linkage" has evolved from the early stage of macro correlation and one-way penetration of emotional funds to the current 3.0 stage, where on-chain perpetual contracts provide extended trading hours and emotional signal value for traditional assets 24/7, and participate in Pre-IPO pricing...

Dalio's important long article: How to position in the current market environment?

Do not confuse the excitement for new technologies with whether those tech stocks are attractive.

DeepSeek Financing Story

DeepSeek's financing insider information exposed: "Four-hour meeting" fully demonstrates Liang Wenfeng's determination for AGI, over a hundred institutions involved, Sequoia and Hillhouse rarely absent, not poaching talent is the hardest red line.

Contents

Popular coins

Latest Crypto News

Read more
iconiconiconiconiconiconicon
Customer Support:@weikecs
Business Cooperation:@weikecs
Quant Trading & MM:bd@weex.com
VIP Program:support@weex.com