B.Riley has initiated coverage on Strategy (formerly MicroStrategy), the largest corporate holder of Bitcoin, with a Buy rating. The analyst points to the company's massive Bitcoin stash, institutional standing, and disciplined financial execution as key drivers.
B.Riley Flags Buying Opportunity at 1.2x NAV
B.Riley estimates Strategy's Bitcoin holdings are worth nearly $55 billion, with an average acquisition price of roughly $76,000 per coin. Shares trade at $138.95, corresponding to just 1.2 times net asset value — a sharp contraction from the 3.4x multiple seen in 2024. The firm sees this discounted valuation as a potential entry point.
Overall analyst sentiment remains positive, with a consensus Buy rating. However, price targets diverge wildly: the most conservative target is $185, while Benchmark's projection through December 2026 hits $705. The wide spread underscores the difficulty of valuing companies with outsized Bitcoin exposure.
Funding Arsenal: Six Instruments and $2.25B Cash Buffer
Strategy's management describes its approach as a “digital credit platform,” employing six tools — common shares plus five types of perpetual preferred equity with dividend rates of 8% to 11.5%. The company holds $2.25 billion in cash, enough to cover roughly 2.5 years of interest and dividend obligations.
Recent months saw aggressive accumulation. Equity placements raised $1.28 billion through common and preferred share sales, funding the purchase of 17,994 Bitcoin. CEO Michael Saylor reiterated the firm's commitment to holding and growing its digital asset reserves.
2025 Milestones: 22.8% Bitcoin Yield and First S&P Rating
For 2025, Strategy reported a Bitcoin Yield of 22.8% and recognized an $8.9 billion gain from its Bitcoin portfolio's dollar value. The company also secured its first credit rating from S&P — B- with a stable outlook in Q3 2025, a milestone for a firm with such an unconventional balance sheet.
As a Nasdaq 100 constituent, Strategy attracts passive inflows from index-linked funds. Shares jumped 7.6% in the latest session amid a broad crypto market recovery. InvestingPro's real-time analysis places the stock near its Fair Value.
While B.Riley's target sits at the conservative end of the industry range, the initiation signals measured confidence in Strategy's position and financial trajectory.