Although the Bitcoin-buying firm is currently valued at a slight premium to its digital asset holdings, that premium should enlarge again as investors grow more confident in the Tysons Corner, Virginia-based firm’s ability to hold onto the asset, they wrote.
“As concerns over MSTR’s liquidation event get resolved, we expect a strong recovery in MSTR premium to NAV towards its historical average,” they wrote, noting that the company has historically been valued at a multiple-to-net asset value, or mNAV, of 1.57.
Meanwhile, the company has tapped several types of preferred stock as an additional source of funding for purchasing Bitcoin. Those products offer dividend payments, prompting questions on Strategy’s ability to make payments as Bitcoin’s price fell 23% the previous quarter.
Bernstein analysts wrote that Strategy “would be the key beneficiary” of a recovery in Bitcoin’s price. The analysts believe Bitcoin has bottomed and could shoot as high as $150,000 in 2026, after most recently hitting an all-time high above $126,000 in October.
Along those lines, Bernstein analysts described Strategy’s cash reserves as “a fortress.” They added that Strategy could continue to amass Bitcoin using preferred shares, which could become more attractive as dividend-paying products if interest rates fall.
Strategy currently manages $830 million in annual dividend payments, which investors could grow more concerned over if Bitcoin dips below Strategy’s average purchase price of $75,000, the analysts wrote. However, they described those fears as unwarranted, considering the size of Strategy’s stockpile, and obligations on convertible debt that are still several years away.
Still, the analysts described the company’s potential delisting from MSCI indices as a short-term overhang, as well as increased equity dilution.
