The strategy (MSTR), the company previously known as Microstrategy, is an attractive investment for capital investors looking for Bitcoin’s leverage exposure (BTC), said KBW investment bank in a research report on Thursday.
KBW assumed the coverage of the strategy with a higher performance rating and an objective price of $ 560. The shares were 1% higher in around $ 329 in the early negotiation.
Once the strategy, the company co -founded for Michael Saylor, adopts the updated accounting treatment of the Board of Financial Accounting Standards (FASB) for Bitcoin Holdings in the first quarter of this year, will change an “outdated measurement approach for the Reasonable value accounting, with unrealized gains/losses that flow to net income, “wrote the analyst Bill Papanastasiou.
The company reported a deterioration loss of $ 1 billion for the fourth quarter of 2024 because it did not adopt new FASB rules.
One of the most important criteria to join the S&P 500 index are the positive net gains in the last quarter and the sum of the four previous quarters, according to the report.
The strategy has the “largest Bitcoin treasure in the possession of a public operational company”, and the company has a series of tools that it could use to expand its BTC battery, Kbw said.
In the long term, there is also the opportunity for the strategy to generate performance in the chain of applications built in the Bitcoin network, the bank said.
The development of applications at the top of the Bitcoin network could lead to a massive value unlock, since it is the safest, decentralized and valuable public block chain, the report added.
Read more: The strategy sees Thursday Nasdaq for Stock preferred Stock convertible
