Strategy (MSTR) stock isn’t just recovering, it’s also getting renewed backing from Mizuho after this week’s sharp pullback. In a new update, analyst Dan Dolev kept his Outperform rating on the stock and reaffirmed his $484 price target after speaking with Strategy’s CFO, Andrew Kang, about the company’s liquidity strategy. Dolev said the latest moves could play a bigger role than many investors realize.
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Kang Outlines a Stronger Liquidity Plan
Dolev said Strategy’s recent steps show a clear effort to strengthen its financial position. During the call, CFO Andrew Kang walked through the company’s updated plan. He said Strategy raised $1.44 billion in equity to build a U.S. dollar reserve large enough to cover 21 months of preferred dividends. This gives the company a long runway without selling any Bitcoin.
He added that the company plans to grow its reserves only when its market-adjusted net asset value (mNAV) is above 1, a move meant to protect shareholders from dilution. Kang also noted that the company does not plan to issue new convertible notes. Existing notes will be equitized at maturity, with a shift toward perpetual preferred equity to keep capital flexible.
Kang said this reserve plan allows Strategy to operate for more than three years at current Bitcoin prices. He also mentioned that the company is exploring ways to use its Bitcoin holdings, such as lending or covered calls, though these ideas are still early.
After the call, Dolev said Strategy’s liquidity picture looks stronger than recent market action suggests. He believes the reserve plan, the focus on mNAV, and the shift away from new convertible notes give the company a more stable base going forward.
Is Strategy a Good Stock to Buy?
Analyst sentiment toward Strategy remains overwhelmingly bullish. Wall Street rates the stock a Strong Buy, based on 14 analysts tracked in the last three months. Of these ratings, 12 analysts call it a Buy, two say a Hold, and none recommend a Sell.
The average 12-month MSTR price target sits at a massive $524.08. This target implies an upside potential of 189.02% from the last price.
