B.Riley Launches Strategy (MSTR) Coverage With Bullish Outlook on Massive Bitcoin Position

TLDR

• B.Riley launched Strategy (MSTR) coverage with a Buy recommendation and $175 per share price objective
• The company owns roughly 721,000 Bitcoin — representing approximately 3.4% of the cryptocurrency’s total circulating supply — with an average cost basis near $76,000
• Shares now trade at 1.2x net asset value, significantly lower than the 3.4x multiple reached during 2024
• The firm maintains $2.25 billion in cash reserves, sufficient to fund approximately 30 months of interest payments and dividend commitments
• Company leadership announced 22.8% Bitcoin Yield performance alongside an $8.9 billion Bitcoin dollar gain for 2025

B.Riley launched coverage of Strategy (MSTR) on March 10, assigning a Buy recommendation with a $175 price objective.

Strategy Inc, MSTR

The investment firm highlighted Strategy’s “unmatched scale, institutional credibility, and disciplined capital markets execution” as primary factors supporting the positive rating.

Strategy operates as the largest Bitcoin treasury corporation globally. Current holdings as of March 6 total approximately 721,000 Bitcoin — equivalent to roughly 3.4% of the entire Bitcoin supply in circulation — accumulated at an aggregate cost approaching $55 billion.

This translates to an average acquisition cost of approximately $76,000 per Bitcoin.

With shares currently trading at $138.95, the company’s valuation stands at 1.2 times modified net asset value. This represents a substantial decline from the approximately 3.4 times multiple observed at the 2024 peak. B.Riley interprets this valuation compression as creating a favorable buying opportunity.

Broader Wall Street sentiment aligns with a positive outlook on the shares. The consensus recommendation is Buy, although analyst price targets demonstrate considerable variation — spanning from $185 at the conservative end to $705 at the upper extreme. Benchmark maintains that $705 projection, recently confirming its Buy stance based on sum-of-the-parts valuation modeling that incorporates anticipated Bitcoin accumulation through December 2026.

How Strategy Funds Its Bitcoin Buying

Strategy has established what management describes as a “digital credit platform” utilizing six distinct securities — including common stock plus five series of perpetual preferred equity instruments carrying dividend rates between 8% and 11.5%.

The corporation maintains a $2.25 billion cash position, providing approximately 30 months of coverage for its annual interest expense and dividend payment requirements.

Recently, Strategy added 17,994 additional Bitcoin to its treasury using proceeds from equity sales. The transaction generated $1.28 billion through the company’s at-the-market distribution program — comprising $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 publicly affirmed the company maintains a hold strategy with no intention to liquidate its Bitcoin position, while continuing systematic acquisitions.

Recent Performance and Ratings

For 2025, company management achieved a 22.8% Bitcoin Yield metric along with an $8.9 billion Bitcoin dollar gain.

Strategy secured its inaugural S&P credit rating of B- with stable outlook during Q3 2025, marking a significant achievement for an organization with this distinctive balance sheet composition.

As a Nasdaq 100 index component, the stock gains exposure to substantial passive investment flows.

Shares advanced 7.6% in recent trading as Bitcoin staged a recovery, lifting cryptocurrency-adjacent equities throughout the sector.

InvestingPro’s current analysis indicates the stock is trading close to its Fair Value estimate.

B.Riley’s $175 price target positions toward the more conservative end of Wall Street’s range, suggesting a measured perspective on valuation multiples despite the firm’s Buy recommendation.

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