- Strategy stock rose after a breakout in Bitcoin above $80,000.
- Bernstein lowered its price target for MSTR stock to $350, but kept a "Strong Outperformer" rating.
- Canaccord raised its price target for Strategy to $175, while maintaining a "Buy" rating.
## Details
Strategy Inc shares (formerly known as MicroStrategy) jumped more than 12% on Thursday, as Bitcoin broke above $80,000, boosting investor sentiment toward the company, which is often viewed as a leveraged investment vehicle for exposure to the digital currency, given its massive Bitcoin holdings.
Meanwhile, the Nasdaq Composite rose 1.5%, while the S&P 500 climbed 0.81%.
Strategy rose despite mixed signals from Wall Street, as Bernstein lowered its price target while Canaccord raised it.
## Bitcoin outlook supports Strategy stock
Bernstein cut its price target for Strategy stock to $350 from $450, while keeping an "Outperform" rating. The brokerage attributed the cut to an update to the Bitcoin cycle timeline, and faster-than-expected dilution of the company's shares due to share sales.
However, Bernstein remains optimistic about Bitcoin over the long term, expecting the currency to reach $150,000 by mid-2027, and around $300,000 at the peak of its next cycle in 2029. The company's most bullish scenario sees Bitcoin reaching $500,000 by 2029.
Analysts led by Gautam Chughani said rising sovereign debt and interest costs could increase pressure on governments, which may encourage currency debasement—an outcome that a rare asset such as Bitcoin could benefit from. Bernstein's outlook also points to broader adoption, citing easy institutional and retail access, traded spot Bitcoin funds, and purchases by institutional treasuries, as factors supporting Bitcoin's potential role as a solid asset.
## Strategy has about 4% of the total Bitcoin supply
Strategy currently holds 840,447 units of Bitcoin, representing roughly 4% of the world's total coin supply.
Bernstein said the company's strengthened balance sheet provides cash coverage sufficient for about 3.9 years to pay annual interest and preferred equity obligations. Analysts also noted that the continued strength of Bitcoin and the excellent recovery of Strategy stock (STRC) toward $100 could allow the company to resume Bitcoin purchases at a more aggressive pace.
The broader market also showed signs of growing interest in assets associated with what's known as the "debasement trade." Eric Balchunas, Bloomberg's senior ETF analyst, said, "The debasement trade has started replacing AI mania," noting that BlackRock's spot Bitcoin fund (IBIT) and the SPDR Gold Fund (GLD) have returned to the list of the 10 most heavily traded ETFs.
Bernstein said that about 59% of the Bitcoin supply has not moved over the past twelve months, and the currency rose 28% over 10 days after falling by about 50% from its October 2025 peak.
## Canaccord raises its price target for Strategy
While Bernstein lowered its target, Canaccord analyst Joseph Vafi raised his price target for Strategy stock to $175 from $130, while keeping a "Buy" rating. Canaccord noted that Strategy's stock positioning has improved over the past few weeks as company-specific and macroeconomic factors have started to converge.
## Technical Indicators
Technical indicators also point to a sharp near-term rebound, as Strategy stock trades above its 20- and 50-day moving averages, while still below its 200-day moving average. The stock's Relative Strength Index (RSI) is 73.26, placing it in the "Overbought" zone.
The stock is still 2.2% below its 200-day moving average of $141.60, making this level a likely test for the long-term trend. The stock is still in the process of recovering from the "death cross" recorded in October 2025, as it remains down 59.5% over the past twelve months.