Strategy (NASDAQ:MSTR) might have once been a run-of-the-mill BI software company, but its raison d’être over the past few years has revolved around a simple yet original idea: buy as much Bitcoin as it can get its hands on, watch BTC’s price go up (or down – it doesn’t really matter), and, well, repeat.
It’s a novel formula that is the brainchild of BTC advocate, executive chairman and co-founder Michael Saylor and has resulted in huge share price gains. Since the Bitcoin buying spree kicked off in August 2020, the stock has climbed around 2,700% higher.
It’s no surprise, then, that H.C. Wainwright analyst Mike Colonnese thinks the company should be on investors’ radar.
“We view MSTR as one of the most compelling public equity investments available to investors seeking to gain levered upside exposure to BTC, the best performing asset class of the past decade,” the analyst said.
The future doesn’t look too bad, either. Colonnese thinks that based upon “multiple near-term positive catalysts and our extensive analysis of Bitcoin’s historical four-year price cycles,” the asset is poised to charge ahead in 2H25, and naturally MSTR stock will benefit from such a move.
Meanwhile, with the Trump administration taking a wholly positive stance on all things crypto, the U.S. regulatory climate for digital assets is more favorable than ever. Additionally, via proposed legislation, the U.S. government could begin acquiring Bitcoin in 2025.
“We are also encouraged by recent price action which shows that BTC is beginning to decouple from equities amid recent market turmoil, while MSTR continues to outperform BTC,” Colonnese further said.
One note of caution amidst all the bullish talk, Colonnese does warn investors that the shares also increase exposure to downside movements in Bitcoin’s price, and he acknowledges the possibility of another short-term correction for BTC during Q2 due to “broader macroeconomic headwinds.”
Nevertheless, that’s part and parcel of the BTC investment game, and in any case, Colonnese sees MSTR’s, strategy as a sound one.
“We believe Strategy’s unique and proven ability to raise equity and debt capital at scale (over $25B raised in the past two quarters) by leveraging the largest corporate BTC reserve in the world (538,200 BTC worth $49B) to accumulate additional coins at a faster pace than it has issued shares, justifies a durable and healthy premium to NAV,” Colonnese summed up.
On that bullish note, Colonnese kicked off coverage of MSTR with a Buy rating and a $480 price target, suggesting the stock could rally 26% from current levels. (To watch Colonnese’s track record, click here)
There are plenty of other MSTR supporters on Wall Street. In fact, barring 1 bear, all 12 other recent analyst reviews are positive, making the consensus view here a Strong Buy. At $508.21, the average price target offers a 12-month upside of ~34%. (SeeMSTR stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
