Shares of Strategy (MSTR) trended higher on Wednesday, supported by rising Bitcoin prices. Adding to the momentum, BTIG analyst Andrew Harte reiterated a Buy rating and a $250 price target, pointing to strong demand for the company’s new STRC offering. The price target implies about 102% upside from current levels.
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For context, “STRC” is a high-yield preferred stock issued by Strategy that pays a variable dividend and is used to raise capital to buy more Bitcoin without diluting common shareholders.
Why This Top Analyst Is Bullish on Strategy
Harte sees STRC as a key step in Strategy’s plan to grow its Bitcoin holdings and change how investors gain exposure to the asset. It pays about an 11.5% variable dividend and helps the company raise capital to buy more Bitcoin. It’s a way to make Bitcoin exposure less risky for some investors while boosting upside for MSTR stockholders.
The analyst explained that this structure allows Strategy to pass on a fixed portion of Bitcoin returns to STRC investors, while any gains above that level go to common shareholders. This effectively “strips out” part of Bitcoin’s volatility and turns it into a more stable, income-like product.
He also noted that demand is already strong, with Strategy issuing more than $1.5 billion of STRC in March alone, showing that the model is gaining traction among investors.
The analyst believes this approach could allow Strategy stock to outperform Bitcoin itself over time. As STRC scales and becomes more liquid, it could attract more investors and highlight its appeal as an alternative to traditional fixed income, supporting further upside in MSTR shares.
Is Strategy a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Strong Buy consensus rating on MSTR stock based on 12 unanimous Buys assigned in the past three months, as indicated by the graphic below. Furthermore, the average MSTR price target of $284.17 per share implies 129.69% upside potential.
