Strategy Inc. Shares Poised for Potential Surge with $705 Price Target

Strategy US5949724083

A trio of recent developments has injected fresh optimism into Strategy Inc. (formerly MicroStrategy) following a year of significant share price declines. Investor sentiment is being shaped by a bullish analyst call, cryptic signals from the company's leadership regarding its Bitcoin strategy, and a notable dividend adjustment.

Adding fuel to the optimistic fire is a recent social media post from Executive Chairman Michael Saylor. On Sunday, he posed a simple question on platform X: "Orange or Green?" Market observers widely interpret this as a hint at impending Bitcoin purchases. In this context, "Green" is believed to represent the company's average cost basis for its Bitcoin holdings, while "Orange" symbolizes the current market price.

This suggests Strategy Inc. may be preparing to deploy capital to either lower its average cost per Bitcoin or opportunistically increase its substantial holdings. The company already possesses a treasury of 672,497 Bitcoin, valued at approximately $61 billion. Furthermore, management has demonstrated financial flexibility by increasing the dividend for preferred shareholders from 10.75% to 11.00%, effective January 1, 2026.

Benchmark Analyst Sees Significant Undervaluation

The immediate catalyst for the renewed interest is a research note from investment bank Benchmark. On Friday, the firm reaffirmed its "Buy" rating and maintained a $705 per share price target for 2026. Given Strategy's closing price of $157.16 on Friday, this target implies a potential appreciation of over 300%.

Should investors sell immediately? Or is it worth buying Strategy?

The analysts base their optimistic outlook on the firm's massive Bitcoin position. They argue the equity is currently trading at a discount to its net asset value (NAV). This assessment provides a fundamental support level for shares that have shed roughly 57% of their value over the past 12 months.

Challenges and Critical Dates Ahead

Despite these positive indicators, the investment landscape remains complex. The lingering effects of the "crypto winter" continue to exert pressure. Investors are also bracing for unrealized book losses in the quarterly report due on February 3, 2026, resulting from new FASB accounting rules. An additional overhang is the potential removal of Strategy from the MSCI index, which could trigger selling from passive funds.

For shareholders, January 15, 2026, stands as a critical near-term date. This day will bring both the decision regarding the company's MSCI index membership and serves as the record date for the increased preferred dividend. The stock's trajectory will likely hinge on a recovery in Bitcoin's market price and whether management follows through on the hinted acquisition plans.