Top analysts from TD Cowen and Benchmark reiterated a Buy rating on Strategy (MSTR) stock despite the recent selloff in shares of the Bitcoin (BTC-USD) treasury company. MSTR stock has declined about 7% over the past month, but is still up 18% year-to-date. TD Cowen analyst Lance Vitanza contends that while MSTR stock has “traded poorly over the dog days of summer,” he has a longer-term view and expects notable outperformance ahead.
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Interestingly, Strategy now qualifies for inclusion in the S&P 500 (SPX), with a decision expected this week that could be a major milestone, given the integration of digital assets into mainstream U.S. equities.
TD Cowen Analyst Remains Optimistic About MSTR Stock
Vitanza noted that activity has picked up over the past week, with Strategy purchasing an additional 430 bitcoins for $51.4 million. The 5-star analyst added that acquisitions were funded mainly via notable issuance under three (STRK, STRF, and STRD) of Strategy’s four preferred stock at-the-market (ATM) offerings.
The analyst highlighted that the new STRC offering continues to trade well in the secondary market. Vitanza expects additional issuance heading into the fall.
While overall activity levels have been somewhat subdued, Vitanza believes that MSTR’s fundamentals remain robust, with several favorable developments across the Bitcoin/cryptocurrency sector. In particular, the analyst pointed out the highly successful initial public offering (IPO) of Bullish (BLSH), an institutionally focused digital asset platform that provides market infrastructure and information services.
Vitanza retained a Buy rating on MSTR stock but lowered the price target to $640 from $680 to reflect near-term BTC and capital markets fundamentals.
Top Benchmark Analyst Reaffirms a Buy Rating on Strategy Stock
Additionally, Benchmark analyst Mark Palmer reiterated a Buy rating on MSTR stock, with a Street-high price target of $705, indicating 106.4% upside potential.
The 5-star analyst contends that investors’ criticism on social media related to MSTR’s decision to relax its self-imposed restriction on using common equity below a 2.5x mNAV (multiples of native asset value) threshold was a “rational course-correction that restored flexibility,” in line with past practice. For context, during the Q2 2025 earnings call, the company said that it will no longer issue MSTR common stock at mNAV lower than 2.5x, except in the case of financing dividend payments for its preferred shares (STRF, STRK, STRC, and STRD).
Palmer believes that the pressure on MSTR’s stock price in recent weeks was triggered by a compressing market premium relative to its underlying Bitcoin holdings and a choppy macro/crypto backdrop.
“The upshot is that we continue to view MSTR as the cleanest and most liquid way to own the upside in Bitcoin without taking mining-execution risk,” said Palmer.
Is MSTR Stock a Good Buy?
Overall, Wall Street has a Strong Buy consensus rating on Strategy stock based on 12 Buys, one Hold, and one Sell recommendation. The average MSTR stock price target of $549.43 indicates about 61% upside potential from current levels.
