Strategy (MSTR) remains under pressure as Bitcoin (BTC-USD) continues to fall. Moreover, the Bitcoin treasury company’s investors await MSCI’s decision on January 15, 2026, on whether firms with 50% or more of their total assets in cryptocurrencies should remain in traditional equity indices. While top TD Cowen analyst Lance Vitanza thinks that MSTR stock might remain under pressure on “sustained MSCI overhang,” he reiterated a Buy rating with a price target of $535.
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MSTR stock is down about 40% year-to-date. Strategy currently holds 649,870 BTC, purchased for an aggregate price of $48.37 billion. The company uses proceeds from equity and debt financings, as well as operating cash flows, to accumulate Bitcoin.
TD Cowen Analyst Reaffirms a Buy Rating on MSTR Stock
Vitanza expects public bitcoin treasury companies (PBTCs) like Strategy to be removed from all MSCI indexes in February. “The decision may be as misguided as it is unfortunate,” stated the 5-star analyst. He highlighted that MSTR is not a fund, trust, or holding company, and is a public operating business with a $500 million software business and a “unique” Bitcoin treasury strategy.
The analyst further argued that Strategy is not just buying Bitcoin but creating new BTC-backed securities for investors. Vitanza added that the potential removal of MSTR from major indexes solely because it focuses on bitcoin-backed credit seems unfair and “arbitrary.”
Additionally, Vitanza noted that removal from MSCI indexes would involve significant selling of MSTR stock at a time when it is already under pressure. He cautioned that about $2.5 billion of MSTR value is tied to MSCI indexes, with another $5.5 billion at risk if other indexes follow suit.
Despite the potential setback related to the MSCI exit, Vitanza believes that “Strategy remains an attractive vehicle” for investors seeking exposure to Bitcoin over the long term.
While MSTR Bulls are optimistic about its prospects, critics are wary about the company’s Bitcoin accumulation strategy.
Is MSTR a Good Stock to Buy?
Despite the ongoing turmoil, Wall Street has a Strong Buy consensus rating on Strategy stock based on 12 Buys and two Holds. The average MSTR stock price target of $524.08 indicates 198% upside potential from current levels.
