B.Riley Initiates Strategy (MSTR) Coverage With Buy Rating on Bitcoin Holdings

TLDR

• B.Riley initiated coverage on Strategy (MSTR) with a Buy rating and a $175 price target
• Strategy holds approximately 721,000 Bitcoin — around 3.4% of total Bitcoin supply — acquired at an average price of $76,000
• The stock currently trades at 1.2x net asset value, down from a 2024 peak of 3.4x
• Strategy has a $2.25 billion cash reserve covering roughly 30 months of interest and dividend obligations
• Management reported 22.8% Bitcoin Yield and an $8.9 billion Bitcoin dollar gain in 2025

B.Riley initiated coverage on Strategy (MSTR) on March 10 with a Buy rating and a price target of $175.

Strategy Inc, MSTR

The firm cited Strategy’s “unmatched scale, institutional credibility, and disciplined capital markets execution” as key reasons for the rating.

Strategy is the world’s largest Bitcoin treasury company. As of March 6, it holds approximately 721,000 Bitcoin — about 3.4% of all Bitcoin in existence — acquired at a total cost of around $55 billion.

The average purchase price comes out to roughly $76,000 per coin.

The stock currently trades at $138.95, putting it at 1.2 times modified net asset value. That’s a steep drop from the 2024 peak of around 3.4 times. B.Riley sees that compression as an attractive entry point.

Wall Street broadly agrees the stock is worth owning. The consensus rating is Buy, though price targets vary widely — from $185 on the low end to $705 at the top. That $705 target comes from Benchmark, which reaffirmed its Buy rating and based the figure on a sum-of-the-parts analysis of projected Bitcoin holdings through end of 2026.

How Strategy Funds Its Bitcoin Buying

Strategy has built what it calls a “digital credit platform” across six securities — common equity plus five series of perpetual preferred stock with coupons ranging from 8% to 11.5%.

The company holds a $2.25 billion cash reserve, giving it about 30 months of runway to cover annual interest and dividend payments.

Last week, Strategy acquired 17,994 more Bitcoin using proceeds from share sales. The company raised $1.28 billion through its at-the-market offering program — $899.5 million from 6.33 million Class A common shares and $377.1 million from 3.78 million preferred shares.

CEO Michael Saylor has stated the company has no plans to sell its Bitcoin holdings and will continue buying.

Recent Performance and Ratings

In 2025, management delivered a 22.8% Bitcoin Yield and an $8.9 billion Bitcoin dollar gain.

Strategy received its first S&P credit rating of B- with a stable outlook in Q3 2025, a milestone for a company with this kind of balance sheet structure.

The stock is a Nasdaq 100 constituent, which puts it in front of a broad range of passive investors.

The stock rose 7.6% recently as Bitcoin rebounded, pulling crypto-related names higher across the board.

InvestingPro analysis currently suggests the stock is trading near its Fair Value.

B.Riley’s $175 target sits toward the lower end of the Street range, reflecting a more conservative view on valuation multiples even as the firm rates it a Buy.

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