Strategy (MSTR) Stock Is Less Risky Now, Says Top Investor – But Is It Worth Buying?

Strategy (NASDAQ:MSTR) stock is widely seen as a proxy for Bitcoin, with the company’s fortunes closely tied to the cryptocurrency’s performance. After all, under Michael Saylor’s leadership, accumulating as much BTC as possible has become the company’s raison d’être.

Over the past few years, Strategy has significantly ramped up its Bitcoin acquisition efforts, primarily by issuing convertible debt and shares. In just roughly the first five months of 2025, the company purchased 133,485 Bitcoins. As a result, Strategy now holds nearly 3 percent of the total circulating supply of Bitcoin.

The company intends to continue pursuing debt-financed Bitcoin acquisitions both this year and in the future. Its recent purchases have been funded through a mix of at-the-market share offerings, which have included preferred stock.

So, it’s no surprise to learn that one top investor, known by the pseudonym The Asian Investor (TAI), sees Bitcoin’s recent rise to a new all-time high as a welcome development that helps MSTR’s investment case.

“With Bitcoin interest set to only increase going forward due to institutional adoption, I believe Bitcoin’s price surge limits the risks of an investment in Strategy,” said TAI, who ranks among the top 3% of TipRanks’ stock pros. (To watch The Asian Investor’s track record, click here)

That marks something of a change in tune. Not long ago, the investor rated MSTR shares a Strong Sell, citing the stock’s “high valuation relative to the Bitcoin price.” But with Bitcoin climbing and valuations appearing more grounded, the outlook seems to have stabilized.

Still, that doesn’t mean the stock is cheap. Currently, investors are paying ~3.1 times the company’s GAAP book value of $121 per share. Even so, Strategy has historically commanded far higher premiums – especially during peaks of crypto market exuberance.

So, does that make MSTR stock a Buy? Not quite.

Yes, the valuation is more reasonable than it has been. But for one, anyone interested in buying Bitcoin can do so directly, and there are other ways to gain exposure – such as through an ETF. Additionally, the greatest risk facing Strategy is its highly leveraged Bitcoin investment approach, which leaves the company vulnerable to significant mark-to-market losses if Bitcoin’s price were to drop sharply and unexpectedly. Not unheard of, for sure.

So, while TAI no longer considers the stock as a Sell, he still heeds caution.

“I am still not a big fan of Strategy given its relatively irrelevant underlying intelligence business, but the resilience and recent recovery of the Bitcoin price cause me to change my stock rating to hold,” the investor summed up.

Wall Street, however, sees more to like. With 12 Buys and just one Sell, Strategy stock carries a Strong Buy consensus. The average price target of $524.92 points to ~39% upside potential from current levels. (See MSTR stock forecast)

To find good ideas for crypto stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a tool that unites all of TipRanks’ equity insights.

Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.