Analysts cheer Strategy’s record-setting quarter as Bitcoin treasury pioneer celebrates its ‘iPhone moment’

The leading Bitcoin treasury company reported record profits on Thursday, boosting its so-called “BTC $ Gain” from $15 billion to $20 billion. While Strategy’s stock traded lower on Friday, Wall Street analysts remain bullish on the company’s long-term prospects.

“In most quarters, a company reporting $14bn in operating income … would rightfully dominate headlines,” Benchmark’s Mark Palmer wrote in a note, saying Strategy executives delivered a “two-hour masterclass” during Thursday’s conference call on its long-term vision: “to become not just the dominant bitcoin treasury company, but the world’s largest corporate treasury, full stop.”

Executive Chairman Michael Saylor and CEO Phong Le spent the bulk of Strategy’s call unveiling a capital strategy designed to structurally amplify the company’s bitcoin exposure while turning its treasury into a profit engine, Palmer said. The cornerstone of that plan is its new perpetual preferred share class, Stretch (STRC), which Saylor described as the company’s “iPhone moment.”

New offerings

On July 21, the company launched STRC, a Bitcoin‑backed preferred stock paying a variable monthly dividend. Each share is priced at $100, and the company plans to keep the price near that level by adjusting dividends, issuing shares as needed, and using a call option. The dividend will start at 9% annually, paid out monthly, and will change each month based on market rates.

STRC is designed for investors looking for steady monthly income without big price swings, similar to money-market funds or short-term bonds, but with a higher yield because it’s backed by Bitcoin instead of U.S. Treasurys.

STRC joins other perpetual preferred shares that have no maturity date, but offer fixed dividend payments for as long as the company continues to operate. Strike (STRK) is convertible with an 8% fixed dividend, while Strife (STRF) is non-convertible and offers a 10% fixed cumulative dividend. Stride (STRD) offers a fixed 10% non-cumulative annual dividend and is non-convertible.

Saylor noted that convertible notes were appropriate early in Strategy’s bitcoin accumulation. Preferred equity now offers a perpetual, non‑dilutive alternative that avoids refinancing risk and strengthens its capital structure.

“The upshot is that MSTR is not just buying bitcoin anymore, but instead engineering a corporate treasury machine designed to generate bitcoin-denominated returns, manage its capital raises with precision, and scale faster,” Benchmark wrote. The analysts reiterated a “buy” rating on MSTR while raising the price target to $705.

The aforementioned programs are in addition to Strategy’s “42/42” plan, which targets a total capital raise of $84 billion in equity offerings and convertible notes for bitcoin acquisitions through 2027.

As of July 31, Strategy holds 628,791 BTC at a cost of $46.07 billion, or $73,277 per bitcoin.

Strategy’s mNAV future

Management rolled out Strategy’s new structured plan for issuing common stock using a market Net Asset Value (mNAV) framework. With this approach, the company will issue shares only when its stock price is higher than the per‑share value of its Bitcoin holdings and operating assets. The goal is to protect shareholders from dilution while allowing MSTR to raise capital when market conditions are favorable.

Cantor Fitzgerald analysts said the company’s massive BTC position is unlikely to ever be matched, and they continue to believe it is a pioneer of innovation in the capital raising space.

“We are most confident in MSTR maintaining/expanding its current mNAV (1.8x) amongst the broader Bitcoin treasury peer group,” they wrote in a note, while reiterating an “overweight” rating and raising the price target from $680 to $697.

When a public treasury company consistently increases its bitcoin holdings per share by meaningful amounts with plans to do so for many years, a substantial premium to NAV is logically justified, according to TD Cowen.

“Strategy fits the bill, and we expect the shares will continue trading well as institutional investors increasingly come to grasp what we see as a fairly basic concept,” TD Cowen analysts wrote in a note. The firm maintained a “buy” rating and $680 price target.

The company’s market cap sits at $112 billion, and shares traded down 5.5% to $379.68, according to The Block’s MSTR price data.

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