Strategy (MSTR), the company formerly known as microstrategy, is an attractive investment for equity investors looking for an exhibition in Bitcoin (BTC), the KBW investment bank said on Thursday in a report research.
KBW assumed the coverage of the strategy with an outperformance note and a price target of $ 560. The shares were higher from 1% to around $ 329 at the start of negotiations.
Once Strategy, The Company Co-Founded by Michael Saylor, Adopts The Financial Accounting Standards Board (FASB) Updated Accounting Treatment for Bitcoin Holdings in the First Quarter of this Year, It Will Shift from an “Outdated Measurement Approach to Fair Value Accounting, The unrealized gains / losses flowing towards net profit, “wrote analyst Bill Papanastasiou.
The company has declared a loss of impairment of $ 1 billion for the fourth quarter of 2024 because it has not adopted new rules of the FASB.
One of the most important criteria to join the S&P 500 index is positive net profit in the last quarter and the sum of the previous four quarters, according to the report.
The strategy has the “biggest Bitcoin treasure held by a public operating company”, and the company has a number of tools it could use to extend its BTC battery, said KBW.
In the longer term, there is also the possibility for the strategy to generate a chain return from applications built on the Bitcoin network, the bank said.
The development of applications in addition to the Bitcoin network could result in a unlocking of massive value, as it is the most secure, decentralized and precious public blockchain, added the report.
Find out more: The strategy sees the NASDAQ list on Thursday for Strk Convertible prefer the stock
