Strategy, Inc.’s identity has long centered on converting as many dollars as possible into bitcoin.
Analysts are now endorsing the company’s evolving approach, which includes holding more cash, arguing that a larger dollar reserve is essential to its long-term aim of buying more BTC.
On the company’s earnings call, Executive Chairman Michael Saylor said:
“Although in the past we’ve had 100% allocation to BTC, I don’t think it’ll be 100% in the future. I think it’ll be a mix. Maybe the best way to buy the most bitcoin is not to buy the most bitcoin.”
STRC becomes the main focus
TD Cowen and Benchmark both reiterated buy ratings on Strategy, noting that returning its STRC preferred stock to par has become management’s central objective.
Benchmark’s Mark Palmer said Saylor devoted most of the 90-minute webinar to restoring STRC to its $99 to $100 range so it can again serve as the primary engine for raising capital to buy bitcoin.
Institutional holdings of STRC nearly tripled from $1.1 billion in mid-March to $3.1 billion as of July 1, taking institutions to 29% of the security.
Where the firms split
Benchmark cut its price target to $435 from $570, resetting its year-end 2026 bitcoin assumption to $100,000 from $125,000.
TD Cowen carried a $260 target and buy rating.
A quarter in the red
Strategy swung from a $10 billion profit in Q2 2025 to an $8.2 billion loss this year, driven by unrealized paper losses on its holdings.
The company grew its bitcoin holdings 11% to a peak of 846,000 BTC before selling and last reported owning 843,775 BTC.
CFO Andrew Kang said the dollar reserve sits at $3.75 billion, enough to cover preferred dividends and interest for roughly two years.
Strategy shares closed Thursday at $97.70 and fell more than 5% on Friday.