Investing.com -- Strategy received a new Buy rating from B. Riley Securities, arguing the Bitcoin treasury operator remains well-positioned despite the recent volatility in digital asset markets.
The firm began coverage of Strategy, the company formerly known as MicroStrategy, with a $175 price target, implying about 25% upside from current levels. It also initiated coverage on Strive with a Buy rating and a $12 price target.
Analyst Fedor Shabalin sees Strategy as a standout name among digital asset treasury companies due to its scale, capital structure and established position in the market.
The broader digital asset treasury company model has faced pressure following a sharp correction in Bitcoin prices. Bitcoin peaked near $126,000 in October 2025 before falling more than 45% to around $69,000 by early March 2026, compressing mNAV premiums across the sector and effectively shutting the common equity accretion flywheel that had previously powered growth.
Strategy currently trades at about 1.2x mNAV, significantly below its 2024 peak of roughly 3.4x.
Despite that stress test, Shabalin argues the model is evolving, with companies shifting toward preferred securities and diversified capital structures to continue accumulating digital assets.
"We believe the next chapter centers on two shifts: the expansion into digital credit instruments, particularly perpetual preferred equity, and the diversification of business lines beyond passive BTC accumulation," he wrote in a Monday note.
The analyst sees Strategy and Strive as "well positioned to navigate the current environment through their differentiated capital structures and disciplined approach to BTC accumulation."
Strategy remains the largest Bitcoin treasury company globally. The company holds roughly 721,000 BTC -- about 3.4% of the total Bitcoin supply -- acquired at an aggregate cost of about $55 billion, or around $76,000 per coin.
The firm has also expanded its financing framework by building a "digital credit platform," including common equity and five series of perpetual preferred securities with coupon rates ranging from 8.00% to 11.50%. The structure allows Strategy to raise capital while continuing to accumulate Bitcoin, with instruments such as STRC expected to serve as a primary engine for ongoing non-dilutive BTC accumulation.
A cash reserve of approximately $2.25 billion currently provides about 30 months of coverage for interest and dividend obligations tied to these securities, Shabalin noted.
He also pointed to the company's operational track record in monetizing its Bitcoin strategy. Strategy generated a 22.8% Bitcoin yield and $8.9 billion in Bitcoin-related gains in 2025, with the analyst projecting between $3 billion and $10 billion in Bitcoin gains in 2026.
"We believe that investors in both common and preferred securities benefit from exposure to the potential long-term appreciation of the underlying BTC holdings, a valuecreation mechanism that MSTR has demonstrated over six years of BTC accumulation," Shabalin said.