B. Riley Initiates Buy Ratings on Bitcoin Treasury Firms Amid Price Slump
By John Nada·Mar 10, 2026·4 min read
B. Riley has initiated buy ratings on bitcoin treasury firms Strategy and Strive, highlighting growth opportunities despite recent market pressures.
Investment bank B. Riley has initiated coverage of bitcoin treasury firms Strategy (MSTR) and Strive (ASST) with buy ratings, despite a significant market downturn. The bank set price targets of $175 for Strategy and $12 for Strive, signaling potential recovery opportunities in the sector.
The bitcoin treasury sector has faced substantial pressure, with bitcoin's price plummeting more than 45% from about $126,000 in October 2025 to roughly $69,000 in early March 2026. This correction has compressed market-to-NAV premiums and slowed equity issuance, which has historically fueled bitcoin accumulation, according to B. Riley's report. The decline in Bitcoin prices, coupled with broader risk-asset sentiment, has heightened volatility in shares of companies linked to digital assets, impacting corporate bitcoin holders and crypto-focused investment vehicles.
Strategy remains the largest bitcoin treasury company, currently holding 738,731 BTC. Notably, the company made a significant purchase last week, acquiring 17,994 BTC for a total cost of $1.28 billion, or $70,946 per coin. This acquisition demonstrates Strategy's aggressive approach to expanding its bitcoin holdings, even amidst a turbulent market. Strategy's shares are trading around 1.2 times mNAV, a considerable drop from a peak of approximately 3.4 times in 2024, indicating a potentially attractive entry point for investors.
The report from B. Riley emphasized that the recent slump in the bitcoin treasury sector has reset valuations, which could pave the way for innovative digital credit financing models. These new models may revitalize growth within the sector, providing much-needed support to firms adjusting to current market conditions. By leveraging their holdings, companies like Strategy and Strive could potentially attract investments looking for undervalued assets.
Strive combines a bitcoin treasury of about 13,100 BTC with an asset-management business overseeing around $2.5 billion. The company benefits from low leverage and a preferred share yield of about 12.5%, with its stock trading at about 0.9 times modified NAV. This valuation suggests that Strive is trading at a discount compared to its underlying assets, making it an appealing option for investors seeking yield in a challenging economic environment. Analysts suggest that the preferred securities issued by these companies could attract yield-focused investors, as the payouts exceed many traditional income alternatives.
The implications of B. Riley’s ratings could be significant for institutional investors looking for exposure to bitcoin treasury firms amidst a volatile market. The potential revival of new digital credit financing models could provide a lifeline for companies struggling with compressed valuations. As these firms adapt to the changing landscape, their ability to leverage undervalued assets may draw renewed interest from investors seeking to capitalize on market corrections.
Furthermore, the analyst Fedor Shabalin noted that Strategy has built a digital credit platform that combines common equity and five series of perpetual preferred shares, yielding between 8% to 11.5%. This structure allows Strategy to tap into a stable cash flow while maintaining a robust cash reserve of about $2.25 billion. This financial foundation provides the company with the flexibility to navigate market fluctuations and pursue strategic acquisitions.
Understanding these dynamics is essential for assessing the resilience of bitcoin treasury firms in a fluctuating market. The ongoing developments will likely influence investor sentiment and shape the future of digital asset financing, as market participants look for strategic entry points in the wake of significant price adjustments. The current environment, while challenging, also presents unique opportunities for forward-thinking investors and companies willing to adapt.
As the market continues to evolve, the actions taken by firms like Strategy and Strive will be closely monitored. Their strategies for growth and adaptation in the face of adversity could serve as a blueprint for other firms in the crypto space. By focusing on innovative financing solutions and capitalizing on market inefficiencies, these companies may not only survive but potentially thrive as the bitcoin market stabilizes.