Strategy (Mstr), the company previously known as MicroStratey, is an appealing investment for equity investors looking for exposure to Bitcoin (BTC), Investment Bank KBW said in a research report on Thursday.

KBW took over coverage of strategy with a better rating and a price target of $ 560. The shares were 1% higher at about $ 329 in early trade.

Once strategy, the company founded by Michael Saylor, FINANCIAL ACCOUNTING STANDARDS BOARD (FASB) Updated accounting processing for Bitcoin Holdings in the first quarter of this year, it will change from a “outdated measurement method to fair value accounting with unrealized gains/losses that float for net income, ”Analyst Bill Papanastasiou wrote.

The company reported a reduced loss of $ 1 billion for the fourth quarter of 2024 because it did not adopt new FASB rules.

One of the most important criteria for joining the S&P 500 index is positive net earnings in the last quarter and the sum of the previous four quarters, the report said.

Strategy has the “largest Bitcoin state box that a public operating company has,” and the company has a number of tools it could use to expand its BTC stack, KBW said.

In the longer term, there is also the possibility of strategy to generate dividends on chain from applications built on the Bitcoin network, the bank said.

The development of applications on top of the Bitcoin network can result in a massive value of locks up as it is the most secure, decentralized and valuable public blockchain, the report added.

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