Strategy (NASDAQ:MSTR) continues to increase its **Bitcoin** acquisitions, regardless of market conditions. Recently, the company purchased 168 bitcoins for $18.8 million, funding this entirely through preferred shares.
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After considering future common share issuance for cash dividends, Cowen analyst Lance Vitanza predicts a net addition of 115 bitcoins, equating to approximately $12.9 million in value. He regards this action as a favorable move for MSTR.
“Although it might seem counterintuitive from a traditional financial perspective, these incremental transactions positively contribute to shareholder value,” stated the esteemed analyst.
This latest acquisition by the company led by Michael Saylor occurs after a recent **crypto** market crash that raised concerns about Bitcoin’s short-term outlook. The incident, prompted by renewed trade war anxieties following President Trump‘s announcement of 100% tariffs on Chinese imports, led to a massive $19 billion liquidation in leveraged crypto holdings—almost twenty times the liquidations seen during the FTX collapse during the 2021–22 “crypto winter.”
Vitanza acknowledges the severe financial strain that recent volatility has imposed on many investors; however, he emphasizes the resilience of the crypto ecosystem. Even with the largest single-day liquidation recorded and a drastic cut in open interest, most exchanges remained operational. Liquidity did dip approximately 65% but bounced back in 35 minutes. While lesser-known tokens suffered significantly, Bitcoin and Ethereum demonstrated relative strength. Bitcoin, for instance, dropped about 15% intraday but ended only 8% down. With Bitcoin currently trading 11% below its recent all-time high, Vitanza asserts that this scenario is “far from a disaster” for long-term investors.
On a broader scale, Bitcoin adoption worldwide is on the rise. In Japan, the number of registered digital asset accounts has increased fourfold over the last five years, surpassing 7.9 million as of August. This growth has led the Financial Services Agency (FSA) of Japan to reconsider the longstanding prohibition against banks investing in assets like Bitcoin. Concurrently, the Securities and Exchange Surveillance Commission is formulating new regulations to combat insider trading in crypto, aiming to cleanse the market of bad actors. Although the final outcome is uncertain, Vitanza anticipates that Japan will ease its restrictions, facilitating traditional financial institutions to hold Bitcoin on their balance sheets.
This development mirrors the UK’s recent approval of retail access to Bitcoin ETPs, including specific retirement accounts. Starting October 8, BlackRock launched its first UK retail Bitcoin ETP. “We are optimistic about the increasing adoption of Bitcoin and believe that this long-term trend overshadows any short-term Bitcoin or Strategy fluctuations,” Vitanza concluded.
Consequently, Vitanza kept a Buy rating on MSTR shares, targeting a price of $620. Achieving this target would provide investors with a substantial return of 105% in a year. Almost all other analysts share this outlook; MSTR stock maintains a Strong Buy consensus, supported by a mix of 14 Buys and 1 Sell. An average target of $540.32 implies returns of 79% over the next 12 months.
