MSTR Stock Could Rally to $200 as BlackRock Holds $470M in Strategy Preferred Shares

Market expert Freedom has indicated that the MSTR stock may have bottomed, with a potential rally above $200 on the horizon. This comes as Michael Saylor’s Strategy continues to increase its Bitcoin exposure with more weekly purchases. The stock has also attracted institutional interest, with Wall Street giants like BlackRock and Vanguard holding significant stakes through their funds. 

MSTR Stock Bottoming Signals With Upside Targets

In an X post, analyst Freedom highlighted that MSTR stock had bottomed or was very near to bottoming, and that the crucial confirmation level was $209. At the current price of around $173, a rebound to $209 represents an increase of about 20%,

The analyst’s accompanying chart highlighted $119, $145, and $164 as critical support levels to watch as the stock eyes a rally above $200. Meanwhile, the chart highlighted $536 as an upside target to keep an eye on.

In an X post, analyst Joss said what is happening with the MSTR stock is far more extreme than most realize. The analyst added that many view Strategy as simply issuing stock to buy Bitcoin, which misses the core design. It is said to be a Bitcoin-backed capital model rather than a more common corporate treasury model.

Joss explained that instead of simply raising capital, Michael Saylor converts demand for equity and debt into Bitcoin accumulation. The company then deploys this capital into large-scale BTC purchases. As Bitcoin is removed from circulation, scarcity increases, which supports higher prices. Higher prices then strengthen Strategy’s balance sheet and increase the value of the debt instruments it issued to raise capital.

The analyst also noted that STRC-type instruments are now being considered as a sound-money exposure. The financing mechanism can continue until liquidity is restored. The structure is said to have been evident during Bitcoin’s fall from $126k to $80k, without forced liquidations or structural collapse. Joss said that this is why he is still confident in the outlook of the MSTR stock price.

Institutions Expand Exposure 

The institutional positioning has also contributed to the discourse around MSTR stock. The BlackRock Preferred Stock and Income Securities ETF announced exposure of approximately $470 million in Strategy-linked securities. These include STRC, STRF, STRK, and STRD.

In an X post, BitcoinTreasuries.NET noted that these assets constitute approximately 3.3% of the ETF portfolio’s total size. The disclosure indicates institutional involvement in crypto-relevant balance sheet exposure.

Meanwhile, asset manager Vanguard purchased $505 million in MSTR shares, marking its first direct stake in the stock. VanEck chief Matthew Sigel also revealed that his firm holds about 284,000 shares, ranking among the top 75 holders of the MSTR stock.