Strategy (MSTR) Soars 132% in 12 Months as AI and Bitcoin Strategy Pays Off
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June 4 - Strategy (NASDAQ:MSTR) stock has climbed about 27% year-to-date and surged 132% over the past 12 months, as investors view it as a leading Bitcoin treasury company with AI analytics capabilities.
The firm, formerly known as MicroStrategy, holds 580,955 Bitcoins, having purchased 705 coins for $75.1 million between May 26 and June 1. Its strategy combines proceeds from equity and debt financings with operational cash flow to build its BTC holdings.
On June 2, Strategy launched an offering of 2.5 million shares of Series A Perpetual Stride Preferred Stock, intending to use net proceeds for additional Bitcoin acquisitions and general corporate purposes, including working capital.
Wells Fargo analysts said Bitcoin is entering an institutional phase, with new Bitcoin treasury corps emerging after MicroStrategy's success. They highlighted that spot Bitcoin ETFs have amassed $136 billion in assets under management within 16 months, and noted that firms tied to political figures plan to raise up to $25 billion.
TD Cowen reiterated a Buy rating on Strategy with a $590 price target, citing the first-ever at-the-market equity program for its STRF preferred stock, which may create greater accretion for common shareholders.
This article first appeared on GuruFocus.