Strategy Stock (MSTR) Doesn’t Need to be Traded with Bitcoin BTC$89,109.82 TD Cowen analyst Lance Vitanza said the premium is a winning bet and maintained his $440 price target.
In a new research note, Vitanza reaffirmed his “buy” rating on the stock and maintained a price target of $440, nearly triple Tuesday’s closing price of $160.23. He said the case hinges on Strategy’s ability to steadily increase its Bitcoin holdings per share, even when sentiment is low and the stock is not trading at a premium to its net asset value.
“We believe this strategy remains attractive for those looking to create exposure to Bitcoin,” Vitanza wrote, noting the company’s history of weathering market downturns by expanding asset coverage through preferred stock.
The company recently issued $2.1 billion worth of common and preferred stock in the eight days ending Jan. 19. The proceeds plus additional capital bought 22,305 shares. BTCthe largest weekly acquisition since November 2024.
The move shows how the company’s financial structure gives it a long-term advantage, Vitanza argued. The strategy adds leverage without traditional debt by issuing variable and convertible preferred stock at or near par. This allows them to acquire more Bitcoin without significantly diluting shareholders.
Investors looking to take a closer look at the company’s capital structure may find value in the company’s preferred stock. Mr. Vitanza highlighted the STRF class, which has an annual yield of about 9.6%. TD Cowen expects this ratio to compress to 7.9% as the share price rises, suggesting a potential 20% price increase. According to the note, if the dividend is fixed at 10%, the one-year return could reach 30%.
Strategy currently holds 709,715 BTCfar more than any other listed company. Vitanza said the company’s equity-led approach continues to accumulate Bitcoin while the price remains under pressure, providing investors with upside to a potential recovery.