Leveraging Capital Structure and Market Lulls: Why Strategy Remains a Buy for Bitcoin-Linked Upside

Lance Vitanza, an analyst from TD Cowen, maintained the Buy rating on Strategy. The associated price target remains the same with $440.00.

Lance Vitanza has given his Buy rating due to a combination of factors that highlight Strategy’s continued effectiveness in building Bitcoin exposure. He notes that the company is steadily increasing the amount of Bitcoin held per share, reinforcing his prior view that management would persistently execute on this accumulation strategy. The use of preferred stock is central to this framework, as it both supports and benefits from the ongoing issuance of common equity, thereby enhancing asset coverage for preferred holders. In Vitanza’s view, this capital structure and execution cadence make the shares an appealing vehicle for investors seeking Bitcoin-linked upside without directly owning the cryptocurrency.

Vitanza also emphasizes Strategy’s ability to capitalize on what he characterizes as a temporarily weak environment for both Bitcoin prices and the stock’s usual trading premium to its underlying holdings. In a short recent window, the company raised over $2 billion through common and preferred stock issuances, swiftly deploying the proceeds to acquire more than 22,000 additional Bitcoins—its largest weekly purchase since late 2024. This aggressive buying during a market lull signals management’s conviction and positions the firm to benefit disproportionately if Bitcoin prices and the implied premium recover. Taken together, these factors underpin his Buy recommendation on the stock.

In another report released on January 16, Mizuho Securities also maintained a Buy rating on the stock with a $403.00 price target.

Based on the recent corporate insider activity of 96 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of MSTR in relation to earlier this year.