Despite posting a significant loss of $5.9 billion in Q1 2025 due to price declines in Bitcoin, analysts from Benchmark and Bernstein maintain positive outlooks for Strategy (MSTR). They’ve both set price targets above $600 per share, reflecting confidence in the company’s strategic shift toward Bitcoin acquisition, which could ultimately yield substantial investor returns.
Equity analysts from Benchmark and Bernstein have voiced strong support for Strategy (MSTR), despite the company recently disclosing a staggering quarterly loss. The first quarter of 2025 saw Strategy reporting a deficit of $5.9 billion linked to its Bitcoin investments. However, both firms maintained their buy ratings, confidently setting their price targets for MSTR at $600 or higher.
On Thursday, Strategy’s financial report revealed a decline of $16.49 per common share, largely attributed to a dip in Bitcoin prices. This dip mirrors the broader challenges faced by tech and crypto firms. Nevertheless, during the earnings call, the company shared plans aimed at increasing its Bitcoin holdings through various investment vehicles, signalling a commitment to its core business transformation that began five years ago.
Since pivoting from software development to Bitcoin acquisition, Strategy now claims approximately 554,000 BTC, valued around $53 billion. The firm acquired its Bitcoin at an average price of $68,459 as of late April. Strategy is presently on the latter half of a monumental $42 billion Bitcoin acquisition initiative, announced last October, with a larger plan referred to as the “42/42 Plan” targeting an additional $42 billion by 2027.
As per Mark Palmer, a senior research analyst at Benchmark, Strategy’s impressive Bitcoin accumulation strategy has positioned it as a market leader. Palmer notes that over 70 public companies have tried to emulate MSTR’s approach, evidencing its first-mover advantage amidst growing competition. Furthermore, he elaborated on the ambitious plan: “MSTR aims to secure a total of $84 billion through equity and fixed income to back its Bitcoin purchase goal.” They’re reportedly about 65% through the initial phase, needing roughly $14.7 billion to wrap it up.
Shares of MSTR were trading up by 3.3% on Friday, closing at $394.37, with the stock climbing over 26% in the last month alone. This upward trend is really quite impressive, marking a 36% rise since the start of the year. Interestingly, the shares came within a dollar of reaching their peak for 2025 just ahead of the earnings report, suggesting strong investor interest.
Bitcoin has maintained a relatively stable price, hovering around $96,700, after experiencing a 14% rise over the last month, signalling a recovery in the digital asset market. Palmer points out, “MSTR currently trades at 2.13 times its net asset value—this ratio is appealing given the firm’s record of generating shareholder value.”
On the other hand, Bernstein increased its price target for MSTR to $600, acknowledging its recent addition of $10 billion in Bitcoin. Analysts appreciated the scaling of its campaign from a focus limited to $21 billion to the more ambitious 42:42 strategy. In their findings, they noted that MSTR remains attractive, serving as a scalable Bitcoin investment vehicle for institutional investors looking for exposure to Bitcoin markets without directly accessing spot ETFs.
In conclusion, both firms have reiterated their positive outlook amidst turbulent market conditions, employing varying valuation methods including a sum-of-the-parts approach to assess the company’s enterprise value from both its software operations and Bitcoin holdings.
