Analysts Stick With Strategy Stock as Saylor Signals Shift Away From All-In Bitcoin Bet

Strategy, the company long known for converting nearly all its cash into bitcoin, is now building a larger dollar reserve, and analysts are backing the shift. Executive Chairman Michael Saylor said on the company’s earnings call that future allocation will not remain 100% bitcoin, describing it instead as a mix aimed at supporting long-term purchasing power.

Returning STRC to Par Becomes Top Priority

TD Cowen and Benchmark both maintained buy ratings on Strategy, noting that restoring its STRC preferred stock to the $99-$100 range has become management’s central focus. Institutional holdings of STRC nearly tripled from $1.1 billion in March to $3.1 billion by July, with institutions now holding 29% of the security.

Benchmark cut its price target to $435 from $570 after lowering its bitcoin price assumption for year-end 2026, while TD Cowen kept a $260 target. Saylor explained that a brief STRC price drop in June stemmed from broker-dealers pulling back credit lines during volatility.

Quarter Marked by Bitcoin Losses

Strategy posted an $8.2 billion loss for the quarter, reversing a $10 billion profit a year earlier, driven mainly by unrealized losses as bitcoin fell over 40% from last year. The company paused bitcoin purchases for five straight weeks, reduced convertible debt by 18%, and raised its dollar reserve to $2.4 billion.