Strategy Receives Positive Rating From KBW With Promising Outlook

According to PANews, investment bank KBW (Keefe, Bruyette & Woods) has initiated coverage on Strategy, formerly known as MicroStrategy, with an "outperform" rating and a target stock price of $560. Currently, Strategy's stock is priced at approximately $329, showing a 1% increase in early trading. The report highlights that Strategy's adoption of the updated Bitcoin fair value accounting standards by the Financial Accounting Standards Board (FASB) in the first quarter of 2025 will shift its asset valuation from the previous impairment method to recognizing unrealized gains and losses in net income. This change is expected to enhance the company's financial reporting. Previously, the company reported a $1 billion impairment loss in the fourth quarter of 2024 due to not adopting the new standards. KBW notes that Strategy holds the largest Bitcoin reserve among publicly traded companies globally and possesses various tools to further expand its Bitcoin holdings. Additionally, Strategy may unlock greater value and increase its chances of being included in the S&P 500 index by generating on-chain revenue through applications on the Bitcoin network.