Analyst Lance Vitanza from TD Cowen maintained a Buy rating on Strategy (MSTR – Research Report) and keeping the price target at $550.00.
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Lance Vitanza has given his Buy rating due to a combination of factors that highlight Strategy’s strategic positioning and financial maneuvers. The company recently issued 1.8 million shares, generating net proceeds of $842 million, which were utilized to acquire 6,556 bitcoins. This acquisition increased their bitcoin yield by 1%, reaching 12.1% quarter-to-date.
Vitanza’s analysis indicates that Strategy’s treasury operations have minimal impact on bitcoin’s price movements, both in the short and long term. Despite some analysts’ concerns that Strategy’s frequent and substantial bitcoin purchases might artificially inflate bitcoin prices, Vitanza finds this argument unconvincing. His research shows that Strategy’s bitcoin acquisitions typically account for a small fraction of the overall bitcoin trading volume, suggesting that the company’s actions are unlikely to significantly influence market prices. This reinforces the attractiveness of Strategy’s stock for investors seeking exposure to bitcoin without directly affecting its market dynamics.
In another report released on April 8, Benchmark Co. also reiterated a Buy rating on the stock with a $650.00 price target.
Based on the recent corporate insider activity of 59 insiders, corporate insider sentiment is neutral on the stock.