Strategy (NASDAQ: MSTR), formerly known as MicroStrategy, recently reported a quarterly unrealized Fair Market Value (FMV) loss of $12.54 billion. That sounds pretty bad on paper. Yet, on May 6, its stock actually rose as Bitcoin (BTC) climbed back above $80,000. This market response suggests investors are still focusing on the company’s Bitcoin-heavy approach rather than traditional earnings metrics.
As of now, Strategy holds over 818,000 BTC, worth roughly $67 billion. It also has about $2.25 billion in cash on hand, so liquidity isn’t a major concern. The latest earnings call revealed some adjustments in how the company handles crypto, which led analysts to lift their price targets despite the big quarterly loss.
BTIG sees a more flexible Strategy
BTIG raised its price target for Strategy stock from $250 to $350 on May 5, keeping a ‘Buy’ rating. The analyst note pointed to a key shift: management is now open to selling Bitcoin when it makes sense strategically. That’s a departure from the long-held ‘never sell’ policy. Historically, investors saw any talk of Bitcoin sales by Chairman Michael Saylor as a red flag. But now, this flexibility is being viewed as a positive. BTIG’s update reflects ongoing confidence in Strategy’s Bitcoin-focused model, which recently helped it surpass BlackRock as the largest institutional holder of BTC.
A day later, on May 6, Clear Street also bumped up its price target from $233 to $240, reiterating a ‘Buy’ rating.
Is Strategy stock a buy right now?
Wall Street remains broadly optimistic about Strategy. Based on 11 analyst reviews over the past three months, the stock carries a ‘Strong Buy’ consensus. That includes 10 ‘Buy’ ratings, one ‘Hold’, and no ‘Sell’ ratings, according to TipRanks. The average 12-month price target sits at $315.70, which suggests a potential upside of about 68.9% from current levels. But forecasts vary widely. The highest estimate is $540, while the lowest is $200.
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