Boost in Strategy (NASDAQ: MSTR) Shares as Bitcoin Recovers
On March 10, Strategy (NASDAQ: MSTR) experienced a notable 4% increase in its share price, mirroring a similar recovery in Bitcoin (BTC). This positive movement has significantly impacted investor sentiment across the broader spectrum of cryptocurrency-related stocks.
Significance of Bitcoin Holdings for Strategy
Strategy’s extensive Bitcoin investment plays a crucial role in its market performance. The company possesses approximately 721,000 BTC, accounting for around 3.4% of the total Bitcoin supply. This substantial holding was acquired at a cumulative cost of nearly $55 billion, with an average purchase price close to $76,000 per Bitcoin. Consequently, any significant developments in the crypto world are likely to influence Strategy’s stock value.
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B. Riley’s Positive Outlook on Strategy
On March 9, B. Riley initiated coverage on Strategy, assigning a ‘Buy’ rating and setting a target price of $175. This marked the first new coverage on the stock since October 2025, following Strategy’s major Bitcoin acquisition in 2026, valued at approximately $1.28 billion.
Optimism from Analyst Fedor Shabalin
Financial services firm B. Riley, through analyst Fedor Shabalin, expressed optimism about Strategy’s “Digital Credit” approach aimed at financing further Bitcoin acquisitions. However, the success of this strategy is contingent upon Bitcoin, often referred to as ‘digital gold,’ outperforming the costs associated with dividends.
Shabalin noted, “We believe the dividend yields offered by Strategy’s and ASST’s preferred instruments, which currently range from 8.0% to 12.5%, are significantly superior to most traditional yield-oriented alternatives. We anticipate that this attractive yield will continue to draw income-focused investors seeking consistent, above-market cash distributions.”
Despite conservative predictions for Bitcoin, Shabalin emphasized the model’s compelling nature. With Bitcoin’s long-term compound annual growth rate estimated at approximately 62%, the spread against the preferred capital cost of 8.0% to 12.5% supports this strategy.
Analysis of Strategy’s Stock Price Target
Currently, Strategy’s stock is trading at $138.95. According to TipRanks, Wall Street analysts maintain a ‘Strong Buy’ consensus, with price targets ranging from $175 to $540. Notably, no analyst has recommended selling Michael Saylor’s company in the past three months.
Looking ahead to the next twelve months, the average stock price target for MSTR is projected at $297.73. This suggests a potential increase of 114.27%, indicating that share prices could more than double by March next year.
