H.C. Wainwright analyst Mike Colonnese has maintained his Buy rating on Strategy Inc. (NASDAQ: MSTR) and kept his price target at $250, following the company’s Q3 2026 earnings release. The decision is supported by the company's financial position, which includes substantial unrealized gains and cash reserves.
Financial Highlights From Q3 2026
Strategy reported $20.9 billion in unrealized fair-value gains on its digital asset holdings for the third quarter of 2026. Additionally, the company held approximately $5 billion in USD reserves following its preferred stock repurchases.
According to Colonnese, these cash reserves provide more than three years of coverage for the company’s dividend and interest obligations, offering a balance sheet cushion alongside its cryptocurrency exposure.
Strategic Pivot and Capital Allocation
During the quarter, Strategy executed a $2 billion preferred stock buyback program, redirecting capital toward repurchasing its preferred shares (STRC) rather than maintaining its previous pace of Bitcoin acquisitions. The annual dividend rate on the preferred shares is 12%, and management has indicated plans to maintain that rate while continuing modest Bitcoin accumulation.
Management has stated a long-term goal of doubling its Bitcoin holdings per share over a seven-year period. The recent moderation in active purchasing is presented as a tactical step to support the underlying financial structure.
Colonnese's $250 target aligns with broader analyst consensus, where covering analysts maintain average price targets between $245 and $250 and an overall Moderate Buy rating.
