11 Best Undervalued Stocks to Invest in According to Reddit

8. Strategy Inc (NASDAQ:MSTR)

Number of Hedge Fund Holders: 45

Forward P/E: ~10.8x

Strategy Inc (NASDAQ:MSTR) is one of the Best Undervalued Stocks to Invest in According to Reddit. On September 15, TD Cowen reduced the price target on the company’s stock to $620 from $640, while keeping a “Buy” rating, as reported by The Fly. The firm opines that the shares’ current ~50% premium to bitcoin holdings undervalues the expected BTC Yield, not to mention the embedded operating leverage. Elsewhere, in Q2 2025 and into July, Strategy Inc (NASDAQ:MSTR) saw strong execution and growth. It expanded its bitcoin holdings to 628,791 bitcoins, garnered more than $10 billion through its ATM programs and IPOs, and witnessed increased institutional and retail demand for the securities.

Strategy Inc (NASDAQ:MSTR)’s overall capital raising activities led to its Bitcoin per Share (BPS) rising by 25% YTD, and, therefore, it raised its full-year BTC Yield and BTC $ Gain KPI targets to 30% and $20 billion, respectively. Such achievements showcase the scale of its Bitcoin treasury strategy and the strength of its capital markets platform. Strategy Inc (NASDAQ:MSTR) received aggregate net proceeds of ~$6.8 billion during the 3 months ended June 30, 2025, and further aggregate net proceeds of ~$3.7 billion between July 1, 2025, and July 29, 2025.

Greenlight Capital, an investment management firm, released its Q4 2024 investor letter. Here is what the fund said:

“There is an open debate as to whether Bitcoin will at some point enter the mainstream as an official currency. In fact, there is a bill before Congress for the U.S. to establish a “Strategic Bitcoin Reserve” and buy one million Bitcoins over five years. The bill’s purpose appears to be the use of public funds to ramp up the price of Bitcoin, thereby enhancing the wealth of existing Bitcoin holders. This seems a dubious use of taxpayer funds, but the new administration has a lot of Bitcoin-owning supporters, so it might happen. More likely, cooler heads will decide that the government should not borrow another trillion dollars in the bond market to speculate in Bitcoin and that there is, in fact, nothing strategic about doing so.

One of the biggest owners of Bitcoin is MicroStrategy Incorporated (NASDAQ:MSTR). While MSTR owns a small software business, its principal pursuit is buying Bitcoin. In practice, MSTR is an investment company that buys and holds Bitcoin.2 MSTR trades at a large premium to the value of the underlying Bitcoin it holds. The idea is to raise money from new investors at a premium and use the proceeds to buy more Bitcoin. Since the Bitcoin that MSTR buys costs less than the Bitcoin-implied value of MSTR’s stock, the new investment is dilutive to new investors but accretive to existing investors. MSTR’s promoters have labeled the return to existing investors created by this scheme the “Bitcoin yield”. As Bitcoin itself yields nothing, the Bitcoin yield is simply a measure of the Ponzi finance’s effectiveness. Lately, it has been pretty effective.”