Strategy Lost More Than 50% of Its Value Last Year: It Will Return 180% According to One Wall Street Pro

Financial Performance

Strategy Inc. lost 53.3% over the past year, with unrealized losses totaling $17.44 billion. However, the company's software business continues to generate recurring revenue, with subscription revenue growing to $62.86 million from $40.82 million.

Analyst's Thesis

Benchmark analyst Mark Palmer rates Strategy Inc. a Buy with a $435 target, implying 183.6% upside. Palmer's thesis is based on three elements: Bitcoin Yield, a lasting premium to net asset value, and a software business generating recurring revenue. The company is targeting a 4.5% Bitcoin Yield this year.

Company Profile

Strategy Inc. is the world's largest corporate Bitcoin treasury, holding 846,000 Bitcoins. The company has a $3.75 billion USD Reserve covering more than 2.1 years of obligations. CEO Phong Le has stated that the company's objective is to double Bitcoin per share over seven years.

Market Outlook

Analysts are nearly unanimous in their rating of Strategy Inc., with 2 rating it Strong Buy, 13 rating it Buy, 1 rating it Hold, and none rating it Sell. The stock currently trades at $153.37, with a consensus target of $236.80 and 54.4% implied upside.