Strategy (MSTR) has become one of the most closely followed Bitcoin-linked stocks in the market. Shares are down about 39% so far this year after the drop in Bitcoin prices, but not everyone sees this as a red flag. One of them is top Bernstein analyst Gautam Chhugani, who remains confident in the company’s long-term story. He maintained a Buy rating on the stock and a $600 price target, which points to about 238% upside from current levels.
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Chhugani’s call comes as Strategy continues to add more Bitcoin. The company recently bought $835.6 million worth of Bitcoin, its most aggressive purchase in the past four months. With the latest purchase, Strategy now holds 649,870 Bitcoin, valued at roughly $61.7 billion at recent prices.
Why Chhugani Sees Upside for MSTR Stock
The 5-star analyst believes fears that Strategy will need to sell Bitcoin are overstated. He said the company still has enough liquidity and flexibility to manage its debt without selling assets.
He also noted that most of the company’s debt is long-term, so there is no immediate repayment pressure. In addition, Strategy continues to raise funds when needed, including a recent $700 million preferred share raise, which gives the company room to buy more Bitcoin at lower prices if it chooses.
Some investors have grown cautious because the stock is now trading close to the value of its Bitcoin holdings. However, Chhugani sees this as a potential entry point if Bitcoin begins to recover.
He further added that interest from large investors in Bitcoin remains solid, even after the pullback. In his view, demand could grow further as regulation becomes clearer and more institutions treat Bitcoin as a long-term asset rather than a trade.
Overall, Chhugani thinks the recent weakness in both Bitcoin and Strategy shares is temporary. He believes the stock could see meaningful upside if Bitcoin rebounds.
Is MSTR Stock a Buy?
The stock of Strategy has a consensus Strong Buy rating among 14 Wall Street analysts. That rating is based on 12 Buy and two Hold recommendations assigned in the last three months. The average MSTR price target of $524.08 implies 181.08% upside from current levels.
Read more analyst ratings on MSTR stock
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