Yahoo Finance·2026-03-10 14:02Core Argument - B. Riley views the current valuation compression of Strategy shares as an opportunity rather than a structural issue, especially with potential improvements in the regulatory environment for cryptocurrency [1][3] Company Overview - Strategy is the largest corporate holder of bitcoin, possessing 738,731 bitcoins, and has developed a diversified digital credit platform with six separate securities [2] - Strive, a newly public company, combines bitcoin accumulation with asset management and holds approximately 13,132 BTC [5][9] Financial Performance - Strategy raised $25.3 billion in FY2025, making it the largest equity issuer among U.S. public companies for the second consecutive year, with a 62.1% year-over-year growth in subscription services revenue in Q4 2025 [4] - Strive raised $762.6 million through PIPE financing and completed an all-stock acquisition of Semler Scientific [5] Market Context - Bitcoin has experienced significant price fluctuations, trading between $65,008 and $74,100 in March 2026, down from a peak of approximately $125,226 in October 2025, leading to compressed NAV multiples for bitcoin treasury stocks [6] - The current share prices of both companies reflect a valuation discount relative to their underlying business strength [1][3] Analyst Ratings and Targets - B. Riley initiated coverage on Strategy with a price target of $175 and on Strive with a target of $12, indicating potential upside from current prices [3][7] - The broader analyst consensus for Strategy is bullish, with a consensus target of $394.38, while Strive's market has not fully priced in its asset management business [7] Sensitivity to Bitcoin Prices - Each $1,000 change in bitcoin price affects Strategy's treasury value by approximately $739 million and Strive's by about $13.1 million, highlighting their sensitivity to bitcoin price movements [9]