As Bitcoin (BTC) prices inch closer to their all-time highs, the ripple effect is being felt across the broader digital asset market, particularly in cryptocurrency stocks such as Strategy (MSTR).
Among these is Strategy (previously MicroStrategy), a company that is strategically positioning itself to capitalize on the bullish momentum in Bitcoin with continued purchases over the past years. Analysts are optimistic, predicting new record highs for Strategy’s stock.
Strategy Bitcoin Gains Soar While Revenues Decline
Recently, Strategy announced its plans to raise capital specifically for further Bitcoin acquisitions. This follows the company’s purchase of 4,020 BTC in May.
To finance these acquisitions, Strategy is utilizing at-the-market (ATM) offerings, having launched an ATM program that allows it to issue shares of its 10.00% Series A Perpetual Stride Preferred Stock, with a total offering value of $4.2 billion.
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In its first quarter of 2025, Strategy reported a 3.6% decline in revenues year-over-year, totaling $111.1 million. However, the company’s subscription service revenues showed remarkable growth, increasing by 61.6% annually to reach $37.1 million.
Additionally, Strategy recorded a 13.7% Bitcoin yield at the end of the first quarter, a metric that measures the change in the ratio of its Bitcoin holdings relative to its diluted shares outstanding.
By the end of the quarter, the company boasted $5.8 billion in Bitcoin gains. Looking ahead, Strategy has raised its Bitcoin yield target for 2025 from 15% to 25%, and its Bitcoin gains target from $10 billion to $15 billion.
MSTR Signals 28% Upside Potential
Wall Street analysts have responded positively to these developments, forecasting a significant narrowing of Strategy’s loss per share by 84% year-over-year for the second quarter. Expectations for the year suggest that the company will turn a profit of $7.30 per share, representing a staggering 209% increase compared to last year.
Analyst sentiment around Strategy stock has turned notably bullish. Following a price upgrade from TD Cowen, other analysts have also revised their targets upward.
Barclays analyst Ramsey El-Assal raised his price target for MSTR from $421 to $475, maintaining an “Overweight” rating that reflects confidence in the company’s strategic initiatives.
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Meanwhile, Cantor Fitzgerald analyst Brett Knoblauch slightly adjusted his price target down from $619 to $614 but retained an “Overweight” rating, expressing belief in Strategy’s ability to uphold its premium net asset value while continuing to acquire Bitcoin.
In another positive move, analysts at H.C. Wainwright lifted their price target from $480 to $521, citing the company’s revised 2025 guidance and its ambitious capital-raising plans. They emphasized the upside potential from Strategy’s Bitcoin holdings.
As Strategy gains traction on Wall Street, it currently holds a consensus “Strong Buy” rating. Out of 13 analysts covering the stock, 11 rate it as a “Strong Buy,” one suggests a “Moderate Buy,” and one analyst has issued a “Strong Sell” rating.
The consensus price target stands at $543.62, indicating approximately 28% upside from current levels, while TD Cowen’s highest target of $680 suggests a potential upside of 61%.
Featured image from DALL-E, chart from TradingView.com
