TSX lower as gold rally takes a breather
Investing.com - Benchmark reiterated a Buy rating on Strategy (NASDAQ:MSTR) with a price target of $705.00, highlighting the company’s continued leadership in the digital asset treasury space. The stock, currently trading at $326.35, has delivered an impressive 75% return over the past year. According to InvestingPro data, analyst targets range from $200 to $705, reflecting the stock’s high volatility (Beta 3.85).
Strategy currently holds 640,031 bitcoins as of October 6, making it the largest corporate bitcoin holder with more than 12 times the holdings of the second-largest corporate owner, according to Benchmark. InvestingPro analysis shows the company maintains a GOOD overall financial health score, with particularly strong profit metrics despite its aggressive bitcoin strategy.
The firm noted that while bitcoin and digital asset treasury companies have proliferated in recent months, Strategy has maintained its distinctive position in the market by following a playbook it developed over the past five years.
Benchmark pointed to Strategy’s creation of a new capital markets vertical focused on bitcoin-linked fixed income instruments, particularly perpetual preferred shares, as a method to fuel the growth of its bitcoin holdings.
The four versions of Strategy’s perpetual preferred stock currently trading under the tickers STRD, STRF, STRK, and STRC were discussed during a Benchmark-hosted investor meeting with Michael Saylor, Strategy’s executive chairman and co-founder.
In other recent news, Strategy Inc has announced that it no longer expects to be subject to the 15% corporate alternative minimum tax (CAMT) following new guidance from the U.S. Department of the Treasury and the IRS. This guidance clarifies that unrealized gains and losses on digital assets like bitcoin are not to be considered when calculating adjusted financial statement income for CAMT purposes. Furthermore, Strategy Inc provided updates on its at-the-market equity offering programs, reporting significant sales of its Series A Perpetual Strife Preferred Stock. Between September 15 and September 28, the company sold over 275,000 shares, generating a combined notional value of $27.6 million and net proceeds of $30.7 million. Additionally, the company has been active in the cryptocurrency market, recently adding 196 bitcoins to its holdings. Despite these developments, Monness, Crespi, Hardt has maintained a Sell rating on Strategy Inc, with a price target of $175.00.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.