• H.C. Wainwright upgraded NASDAQ:MSTR to a "Buy" rating with a new price target of $540, indicating a positive outlook despite recent challenges.
• MicroStrategy's financials have been significantly impacted by its Bitcoin holdings, reporting a $17.44 billion unrealized loss on digital assets in Q4 2025, yet it holds an unrealized gain of about 10% above its cost basis in Bitcoin.
• Despite a recent decline, analysts remain optimistic about MSTR's future, with an average price target of $452, suggesting a potential upside of 270% from current levels.

MicroStrategy Incorporated, trading as NASDAQ:MSTR, is a prominent business intelligence company known for its software and services. Recently, H.C. Wainwright upgraded MSTR to a "Buy" rating, setting a new price target of $540, up from $500. At the time of this announcement, the stock was priced at $132.77, reflecting a positive outlook from analysts.

Despite this upgrade, MSTR has faced challenges. The stock experienced an 18.4% decline over the past week and a 62.5% drop from a year ago. However, it showed signs of recovery, currently priced at $125.75. This fluctuation raises questions about whether MSTR is a buying opportunity or a potential value trap for investors.

MicroStrategy's financials have been impacted by its Bitcoin holdings. The company reported a $17.44 billion unrealized loss on digital assets in Q4 2025 due to fair value accounting. This led to an EPS of negative $42.93, contrasting with the expected positive $2.97. Despite this, the loss is attributed to accounting practices, not operational issues.

MicroStrategy holds 713,502 bitcoins, with a cost basis of $76,052 per coin. With Bitcoin trading at around $83,800, the company has an unrealized gain of about 10% above its cost basis. CEO Phong Le continues to accumulate Bitcoin, showing confidence in the digital asset's potential.

Analysts remain optimistic about MSTR's future. Thirteen out of fourteen analysts rate the stock as a Buy or Strong Buy, with an average price target of $452. This suggests a potential upside of 270% from current levels. The stock has recently increased by 22.72%, reaching a high of $134.00, with a market cap of approximately $37.99 billion.