After a two-year buying spree, Strategy’s aggressive Bitcoin accumulation is showing signs of moderation. The company’s latest quarterly report reveals that its valuation premium has fallen to its lowest point since early 2023. However, analysts across the board view this slowdown not as a warning sign, but as a strategic pause for a powerful long-term growth engine.

A Breather, Not a Breakdown

The premium at which Strategy’s stock trades, compared to the net value of its assets, has declined to approximately 1.2x. This suggests investor enthusiasm has tempered while Bitcoin consolidates near the $110,000 level. Despite this, the company’s stock climbed over 5% on Friday, buoyed by renewed optimism in the broader crypto market and macroeconomic outlook.

Analysts at Mizuho Securities described the recent slowdown as merely “a breather, not a breakdown.” The firm reaffirmed its Outperform rating with a $586 price target, citing confidence in Strategy’s structural advantages. As of this quarter, Strategy holds over 640,000 BTC, which accounts for roughly 3% of the entire global Bitcoin supply.

Mizuho also projects that Strategy’s Bitcoin yield has hit about 26% year-to-date. If prices hold steady, the company is on track to meet its 30% annual target. The analysts believe Bitcoin could reach $150,000 by the end of 2025, which would drive a compound growth rate of nearly 25% for the company over the next three years.

Unlocking New Capital for Future Growth

Beyond the quarterly figures, market experts are focused on Strategy’s improving credit position. According to analysts at TD Cowen, the company’s recent B– rating from S&P Global Ratings could fundamentally change how it finances future Bitcoin acquisitions. This upgrade makes Strategy eligible to tap into a global credit pool estimated at $4.9 trillion, an expansion that could triple its fundraising capacity.

This newfound access to capital could allow the company to accelerate its Bitcoin purchases on an unprecedented scale once market conditions become more favorable. While Cowen’s team adjusted their price target down to $535 to reflect a weaker start to the fourth quarter, they stressed that the long-term framework for growth remains solid.

Unique Investor Appeal

Analysts also highlight structural benefits that make Strategy’s shares uniquely attractive. The firm’s new Return-of-Capital tax classification for its preferred dividends allows investors to defer taxes indefinitely. This feature provides a significant advantage for institutional buyers seeking regulated, tax-efficient exposure to Bitcoin.

Mark Palmer, a senior analyst at Benchmark, called the recent compression in Strategy’s premium a “gift” and a potential buying opportunity. He reaffirmed his Buy rating and a $705 price target, arguing that the drop is a sign of normalization as market volatility eases. Palmer noted that the preferred-share program offers tax-advantaged yields tied directly to Bitcoin, an edge that spot exchange-traded funds (ETFs) do not currently offer.

The Long-Term Thesis Holds Strong

Despite the short-term cooling, the consensus on Wall Street is that Strategy’s core model remains highly effective. The system of converting traditional capital into Bitcoin exposure provides a steady and scalable method for accumulating the digital asset over time. Analysts believe that as global interest rates stabilize, Strategy will resume its aggressive pace.

For now, the company appears to be taking a cautious approach, consolidating its gains rather than buying into market volatility. This conservative stance could enable it to deploy capital more effectively when the next major Bitcoin rally kicks off. While the rapid surge once expected in 2025 may now progress more gradually, analysts agree that the fundamental trajectory hasn’t changed.

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