Investment bank B. Riley has initiated coverage on bitcoin treasury firms Strategy (MSTR) and Strive (ASST) with buy ratings. The bank set price targets of $175 for Strategy and $12 for Strive.
B. Riley noted that the recent slump in the bitcoin treasury sector, triggered by a significant drop in bitcoin's price, has reset valuations. However, this downturn has also created opportunities for new digital credit financing models that could potentially revive growth.
Strategy, the largest bitcoin treasury company, holds 738,731 BTC. The firm recently acquired an additional 17,994 bitcoin for $1.28 billion. Strategy is developing a "digital credit platform" backed by substantial cash reserves, with analyst Fedor Shabalin highlighting its shares trading at an attractive valuation.
Strive combines a bitcoin treasury of approximately 13,100 BTC with an asset-management business overseeing about $2.5 billion. The analyst pointed to Strive's low leverage, attractive preferred share yields, and a valuation discount, with its stock trading at a discount to modified NAV.
Preferred securities issued by both companies could appeal to yield-focused investors, offering payouts that surpass many traditional income alternatives.