Bernstein Sees 226% Upside for Strategy Stock as Bitcoin Reaches Cyclical Low
Analysts at Bernstein believe that Bitcoin has reached its cyclical low and is now poised for growth. They maintain their $150,000 year-end price target for Bitcoin and have reaffirmed an Outperform rating on treasury company Strategy.
The firm's analysts point to the company's ability to weather a 50% drawdown in Bitcoin from its October peak as evidence of a shift in how it raises capital. Strategy has launched its STRC preferred share, which pays an 11.5% annual dividend on a monthly basis.
STRC trading volumes have risen by 65% over the past three months, making it the most liquid preferred product in its category. Institutional investors hold roughly 23% of the outstanding STRC supply, and the company has raised $2.1 billion through this instrument year-to-date.