MSTR Stock Recovery Can Begin Anytime as Institutional Demand Jumps

Core Viewpoint - Market experts suggest that the worst of the MSTR stock correction may be over, with a potential recovery on the horizon as the company increases its USD reserves to $2.19 billion and institutional ownership rises [1][4]. Financial Position - Strategy (MSTR) has increased its USD reserves to $2.19 billion, providing nearly three years' worth of cash runway, which enhances its long-term financial stability [4]. - The company is currently valued at approximately a 10% premium to its net asset value (NAV), with about $60 billion in Bitcoin on its balance sheet against a market capitalization of roughly $50 billion, indicating a 20% effective leverage [3]. - The cash reserve alleviates refinancing and liquidity pressures related to outstanding convertible bonds, potentially improving the company's credit profile [5]. Market Sentiment - Institutional ownership of MSTR shares has increased from $155 million to $165 million, indicating growing institutional demand [6]. - A public pension fund in New Jersey has made a $16 million investment in MSTR shares, reflecting increased interest from institutional investors [6]. - Citigroup maintains a "buy" rating on MSTR stock but has lowered its price target from $485 to $325 per share [6]. Bitcoin Exposure - The increase in cash reserves has led to a modest dilution in the Bitcoin-per-share metric, reducing Bitcoin exposure on a per-share basis in the short term, but providing greater resilience during prolonged Bitcoin downturns [4].