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Strategy (MSTR) — recognized as the world’s largest Bitcoin (BTC) treasury company — has made headlines with the successful closing of its initial public offering (IPO) of 28,011,111 shares of variable rate series A perpetual stretch preferred stock.
Priced at $90 per share, this offering stands out as the largest US IPO of 2025 and one of the most significant crypto-related offerings in recent years, to which STRC is projected to commence trading on the Nasdaq Global Select Market around July 30, 2025.
Strategy Set To Boost Bitcoin Holdings
According to the official announcement issued on Tuesday, the IPO generated gross proceeds of approximately $2.521 billion, with net proceeds estimated at around $2.474 billion after accounting for underwriting discounts and offering expenses.
Strategy plans to utilize these funds to acquire 21,021 BTC at an average price of $117,256 each. This acquisition will increase the company’s total Bitcoin holdings to approximately 628,791 Bitcoin, amassed at an aggregate cost of about $46.8 billion, translating to an average purchase price of $73,227 per bitcoin, inclusive of related fees and expenses.
These strategic moves have led analysts to anticipate a notable rebound for Strategy’s stock. As reported by NewsBTC, amid a positive shift in Wall Street’s outlook, they are projecting an 84% reduction in the company’s loss per share year-over-year for the second quarter.
Analysts expect Strategy to achieve profitability of $7.30 per share this year, marking a remarkable 209% increase compared to the previous year.
MSTR Price Target Raised
The bullish sentiment surrounding Strategy stock has intensified, particularly following a price upgrade from TD Cowen. Several analysts have revised their price targets upward, reflecting heightened confidence in the company’s strategic trajectory.
Barclays analyst Ramsey El-Assal has adjusted his price target for MSTR from $421 to $475, maintaining an “Overweight” rating that underscores his belief in the company’s initiatives.
Cantor Fitzgerald analyst Brett Knoblauch slightly lowered his price target from $619 to $614 but retained an “Overweight” rating, expressing faith in Strategy’s ability to maintain its premium net asset value while continuing to expand its Bitcoin holdings.
Analysts at H.C. Wainwright also raised their price target from $480 to $521 for MSTR, citing the company’s revised guidance for 2025 and its ambitious capital-raising plans.
The report further notes that out of 13 analysts covering the stock, 11 recommend a “Strong Buy,” one suggests a “Moderate Buy,” and another has issued a “Strong Sell” rating. The consensus price target currently stands at $543.62, while TD Cowen’s highest target reaches $680.
As of this writing, MSTR closed the trading session dropping 9% to its current valuation of $398 per share. Bitcoin, on the other hand, consolidates just 4% below its all-time high at $117,250.
Featured image from DALL-E, chart from TradingView.com
