KBW gives Strategy an Outperform rating, raising its potential for inclusion in the S&P 500 Index

Odaily News Investment bank KBW (Keefe, Bruyette & Woods) has initiated coverage on Strategy (formerly MicroStrategy) and given it an "outperform" rating with a target share price of $560. Strategy's current share price is about $329, up 1% in early trading. The report pointed out that once Strategy adopts the updated Bitcoin fair value accounting standards of FASB (Financial Accounting Standards Board) in Q1 2025, its assets will shift from the old impairment measurement method to unrealized gains and losses included in net income, which will help improve financial performance. Previously, the company reported a $1 billion impairment loss in Q4 2024 due to its failure to adopt the new regulations. KBW believes that Strategy has the largest Bitcoin reserves among listed companies in the world and has a variety of tools to further expand its BTC holdings. In addition, Strategy may be able to generate on-chain revenue through applications on the Bitcoin network in the future, unlocking greater value and increasing the possibility of its inclusion in the S&P 500 index. (CoinDesk)