B. Riley Securities has opened coverage on Strategy, the company previously known as MicroStrategy, assigning a Buy rating and setting a $175 price target. That target implies roughly 25% upside from the stock's prevailing levels. The same research team also initiated coverage of Strive with a Buy rating and a $12 price goal.
Analyst Fedor Shabalin framed Strategy as a leading example among Bitcoin treasury companies, pointing to the firm's scale, capital structure and established market position as distinguishing factors. The coverage note emphasized that these attributes leave Strategy comparatively well-positioned even as digital-asset markets have experienced pronounced volatility.
The broader category of digital-asset treasury companies has been pressured by a marked decline in Bitcoin prices. Bitcoin reached a peak near $126,000 in October 2025 and subsequently fell by more than 45% to trade around $69,000 in early March 2026. That move compressed market NAV premiums across the sector and disrupted the common-equity accretion dynamic that had previously underpinned growth.
Strategy's shares were trading at approximately 1.2x market NAV at the time of the note, a substantial decline from a 2024 high near 3.4x. Despite this valuation contraction, Shabalin argued that the treasury model is evolving, with companies increasingly using preferred securities and more varied capital structures to continue buying Bitcoin.
“We believe the next chapter centers on two shifts: the expansion into digital credit instruments, particularly perpetual preferred equity, and the diversification of business lines beyond passive BTC accumulation,” Shabalin wrote. He added that Strategy and Strive are “well positioned to navigate the current environment through their differentiated capital structures and disciplined approach to BTC accumulation.”
Strategy remains the largest Bitcoin treasury company in the world. The firm holds roughly 721,000 BTC, representing about 3.4% of the total Bitcoin supply. Those holdings were purchased at an aggregate cost of approximately $55 billion, or around $76,000 per coin.
In addition to its Bitcoin holdings, Strategy has broadened its financing framework by developing what the analyst described as a "digital credit platform." That framework includes common equity and five series of perpetual preferred securities with coupon rates ranging from 8.00% to 11.50%. The structure is intended to enable capital raising while allowing the company to persist in accumulating Bitcoin. In this setup, instruments such as STRC are expected to act as a primary engine for continued non-dilutive BTC accumulation.
Shabalin noted that Strategy's balance sheet includes a cash reserve of roughly $2.25 billion. He estimated that this reserve provides about 30 months of coverage for interest and dividend obligations associated with the preferred and other securities.
The analyst also highlighted the company's recent operational performance related to its Bitcoin strategy. In 2025, Strategy generated a 22.8% Bitcoin yield and recorded $8.9 billion in Bitcoin-related gains. For 2026, Shabalin projected Bitcoin gains in a range between $3 billion and $10 billion.
“We believe that investors in both common and preferred securities benefit from exposure to the potential long-term appreciation of the underlying BTC holdings, a valuecreation mechanism that MSTR has demonstrated over six years of BTC accumulation,” Shabalin wrote.
Overall, B. Riley's initiation frames Strategy as a large-scale treasury operator with a diversified set of capital instruments and a significant cash cushion. The note suggests these attributes could help the company manage through the current cycle of digital-asset price weakness while continuing to pursue BTC accumulation and potential investor value creation.