B. Riley Bets on Bitcoin's Corporate Vanguard: Initiates Coverage on MicroStrategy and Strive with Bullish Targets
In a notable endorsement of the corporate bitcoin accumulation strategy, brokerage and investment banking firm B. Riley has initiated coverage on two of the sector's key public players. The firm assigned a Buy rating to MicroStrategy Inc. (NASDAQ:MSTR) with a $175 price target and to Strive, Inc. (NASDAQ:ASST) with a $12 target, analyst Fedor Shabalin leading the coverage on the latter.
The initiation arrives at a pivotal moment for bitcoin-linked equities. After a sharp rally through late 2025, bitcoin has retreated from its peak near $125,000, dragging down the shares of companies whose valuations are tightly coupled to the digital asset. B. Riley's analysis contends this sell-off has created a valuation disconnect, framing the current price weakness as a cyclical compression rather than a fundamental deterioration of the business models.
For MicroStrategy, the undisputed titan of corporate bitcoin holdings, B. Riley's bullish case rests on scale and financial engineering prowess. The company now holds 738,731 bitcoins—a treasury worth over $50 billion at current prices—and has built a sophisticated capital structure featuring multiple series of preferred stock. "MicroStrategy isn't just holding bitcoin; it's built a financial platform around it," the report notes, highlighting the firm's ability to raise capital in varied market conditions where smaller peers cannot compete.
Valuation is central to the thesis. MSTR shares currently trade at approximately 1.2x net asset value (NAV), a stark contrast to the 3.4x multiple seen at the peak of market enthusiasm in 2024. B. Riley interprets this compression as an opportunity, especially if the regulatory landscape for cryptocurrencies continues to mature favorably.
On Strive, analyst Shabalin emphasizes the company's hybrid model, which pairs a bitcoin treasury with a traditional asset management business. This dual-engine approach, combined with a clean balance sheet featuring minimal near-term debt maturities, is pitched as a key differentiator. It offers income-focused investors a layer of stability not found in pure-play bitcoin vehicles. B. Riley argues the current share price fails to reflect the standalone value of the asset management division.
Operational momentum provides further context. MicroStrategy's underlying software business saw subscription revenue grow 62.1% year-over-year in Q4 2025, even as its shares have fallen over 50% in the past year. Strive, which went public via a reverse merger in late 2025 and holds approximately 13,132 BTC, recently bolstered its portfolio with the all-stock acquisition of medical device firm Semler Scientific.
The $175 target for MSTR implies substantial upside from recent levels near $139, though it remains notably more conservative than the analyst consensus target near $394. For ASST, trading around $8.51, the $12 target suggests the firm sees significant unrecognized value. Broader prediction markets currently assign a 38.5% probability to bitcoin reaching $100,000 by end-2026, providing macro backdrop for these bets.
Market Voices:
"Finally, some sober analysis in this space," said David Chen, a portfolio manager at Horizon Capital. "The market has been punishing these stocks indiscriminately. B. Riley is right to separate the signal from the noise. MicroStrategy's capital markets expertise is a genuine moat."
"This is just Wall Street trying to catch a falling knife and drum up commission business," countered Anya Petrova, a vocal crypto skeptic and independent financial analyst. "Initiating coverage after a 50% crash isn't insight—it's hindsight. These aren't companies; they are leveraged bitcoin ETFs with a side of corporate overhead. The entire 'treasury' narrative is a gimmick that collapses when BTC stops going up."
"The hybrid model of Strive is intriguing," noted Marcus Wright, a private wealth advisor. "It potentially reduces the binary 'bet on bitcoin' risk for equity investors. If the asset management arm can generate steady fees, it provides a cash flow buffer that pure holders like MicroStrategy lack. That deserves a premium, not a discount."
Both companies remain highly sensitive to bitcoin's price: each $1,000 move in BTC translates to a roughly $739 million swing in treasury value for MicroStrategy and about $13.1 million for Strive. As bitcoin finds its footing after a volatile period, B. Riley's call suggests the firms built around it may be poised for a re-rating.