Strategy's Major Bitcoin Acquisition Attracts Wall Street Coverage

B. Riley initiates coverage with a $175 target after Strategy's major Bitcoin purchase, boosting its holdings to over 3.4% of the total capped supply.

A significant purchase of Bitcoin by Strategy has captured the attention of analysts, prompting new research coverage from Wall Street. B. Riley Securities initiated coverage on the company's shares this week, assigning a $175 price target and a "Buy" rating. This move follows Strategy's recent acquisition of approximately $1.28 billion worth of Bitcoin.

A Closer Look at the Transaction

Between March 2 and March 8, the company purchased 17,994 Bitcoin at an average price of $70,946 per coin. The acquisition was financed primarily through the issuance of new common stock, which covered roughly 70% of the cost. The remaining portion was funded by selling shares of its "Stretch" series preferred stock, some of which were sold below par value.

This transaction marks the second-largest single Bitcoin purchase so far this year, surpassed only by a January 20 acquisition of 22,305 BTC. Following this latest move, Strategy's total holdings now amount to 738,731 BTC. This represents over 3.4% of the total capped Bitcoin supply of 21 million coins. The cumulative acquisition cost for the company's entire Bitcoin portfolio stands at approximately $56 billion.

Analyst Rationale and Sector Context

B. Riley analyst Fedor Shabalin cited the firm's "unmatched scale, institutional credibility, and disciplined capital market strategy" as key reasons for the bullish recommendation. The initiation of coverage at this specific time is seen as a direct response to the company's latest strategic move.

The analyst did, however, acknowledge the substantial pressure currently facing the Bitcoin sector. Since reaching a high near $126,000 in October 2025, Bitcoin's value has declined by approximately 45%. Strategy's stock has underperformed the underlying asset during this period, falling more than 60% since last October.

B. Riley views the current valuation—trading at 1.2 times its modified net asset value—as an attractive entry point. This represents a significant discount to the peak multiple of around 3.4 seen in 2024.

Diverging Price Targets and Market Perceptions

The firm's $175 price target appears conservative when compared to broader analyst consensus. The average target among 13 "Buy" ratings and one "Hold" recommendation sits at $394. One particularly bullish firm, Benchmark, has set a $705 price target. This projection is based on a sum-of-the-parts model that incorporates assumptions for additional Bitcoin purchases through December 2026.

Capital Structure and Accounting Impacts

Strategy has been an active participant in capital markets. In 2025, it raised a total of $25.3 billion, making it the largest issuer of equity among publicly listed U.S. companies for the second consecutive year. Its capital structure includes common stock and five series of preferred shares with coupons ranging from 8.00% to 11.50%. The company maintains a liquidity reserve of $2.25 billion, which it states is sufficient to cover interest and dividend payments for about 30 months.

New FASB accounting rules have introduced significant volatility to the company's reported earnings. Market fluctuations in the value of its Bitcoin holdings now flow directly through the income statement. The reported net loss of $12.4 billion for the fourth quarter of 2025 is almost entirely a non-cash, accounting effect. Nevertheless, this has substantially influenced market perception of the company's financial health.

Risk Assessment and Forward Outlook

According to prediction markets, there is currently an 88.5% perceived probability that Strategy will avoid a margin call in 2026. The likelihood of Bitcoin reaching the $100,000 mark by year-end is estimated at 38.5%. Such a price scenario would be critical for the valuation of Strategy's equity.