KBW Initiates Coverage of Strategy with $560 Price Target
Investment bank KBW has initiated coverage of Strategy (MSTR) with an outperform rating and a price target of $560. The stock rose 1% to approximately $329 following the report.
- Strategy plans to adopt updated FASB accounting standards for bitcoin in Q1 2024, moving to fair value accounting.
- The company reported a $1 billion impairment loss in Q4 2024 due to not implementing new rules.
- Positive net earnings in the last quarter are essential for inclusion in the S&P 500 index.
- Strategy holds the largest bitcoin treasury among public companies.
- The company may expand its BTC holdings and generate yield from applications on the Bitcoin network.
Potential development of applications could lead to significant value unlocks on the Bitcoin blockchain.