Wall Street analyst defends Michael Saylor's Strategy after stock trades 64% below his lofty price target

Core Viewpoint - Strategy's stock (MSTR) does not require trading at a bitcoin premium to be a successful investment, with a price target of $440 set by TD Cowen analyst Lance Vitanza, nearly triple the recent close of $160 [1] Group 1: Investment Thesis - The investment case for Strategy is based on its ability to grow bitcoin holdings per share, even during low market sentiment [1] - Strategy has a history of navigating market downturns by increasing asset coverage through preferred equity [2] - The company recently issued over $2.1 billion in common and preferred stock, using the proceeds to acquire 22,305 BTC, marking its largest weekly acquisition since November 2024 [2] Group 2: Financial Structure and Leverage - Strategy's financial structure provides a long-term advantage by issuing variable- and convertible-preferred stock, allowing for leverage without traditional debt [3] - This approach enables the company to acquire more bitcoin without significantly diluting existing shareholders [3] Group 3: Preferred Shares and Returns - Investors may find value in the firm's preferred shares, particularly the STRF class, which yields approximately 9.6% annually, expected to compress to 7.9% as shares appreciate [4] - With a fixed 10% dividend, the one-year return on preferred shares could reach 30% [4] Group 4: Bitcoin Holdings - Strategy currently holds 709,715 BTC, significantly surpassing any other public company [5] - The equity-driven approach positions Strategy to continue accumulating bitcoin while prices remain under pressure, providing leveraged upside potential for investors [5]