4 months ago
Strategy (MSTR), the institution formerly known arsenic MicroStrategy, is an appealing concern for equity investors looking for levered bitcoin (BTC) exposure, concern slope KBW said successful a probe study Thursday.
KBW assumed sum of Strategy with an outperform standing and a $560 terms target. The shares were 1% higher astatine astir $329 successful aboriginal trading.
Once Strategy, the institution co-founded by Michael Saylor, adopts the Financial Accounting Standards Board (FASB) updated accounting attraction for bitcoin holdings successful the archetypal 4th of this year, it volition displacement from an "outdated measurement attack to just worth accounting, with unrealized gains/losses flowing to nett income," expert Bill Papanastasiou wrote.
The institution reported an impairment nonaccomplishment of $1 cardinal for the 4th fourth of 2024 due to the fact that it did not follow caller FASB rules.
One of the astir important criteria for joining the S&P 500 scale is affirmative nett net successful the past 4th and the sum of the erstwhile 4 quarters, the study said.
Strategy has the "largest bitcoin treasury held by a nationalist operating company," , and the institution has a fig of tools it could usage to grow its BTC stack, KBW said.
In the longer term, determination is besides the accidental for Strategy to make output on-chain from applications built connected the Bitcoin network, the slope said.
The improvement of applications connected apical of the Bitcoin web could effect successful a monolithic worth unlock, arsenic it is the astir secure, decentralized and invaluable nationalist blockchain, the study added.
Read more: Strategy Sees Thursday Nasdaq Listing for STRK Convertible Preferred Stock
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