Bitcoin Giant Strategy Gets Price Target Boost From TD Cowen After $2 Billion BTC Buy

Analysts at TD Cowen think shares in Bitcoin treasury company Strategy (MSTR) could rise as much as 139% to $400 per share over the next twelve months.

The new forecast reflects an upside of $5 per share, up from analysts’ previous $395 price target. TD Cowen’s bullish update comes a day after the company announced it $2 billion added to Bitcoin compared to the previous week.

“Strategy’s treasury activities continue to exceed expectations and are moving faster than expected Bitcoin accumulation and positive balance actions drive higher BTC per share and improved financial flexibility,” TD Cowen analysts wrote.

As it stands, shares in MSTR were down about 1.1%, trading around $164.79 shortly after the opening bell on Tuesday. At the current price, the company’s shares are now almost 64% away from their 52-week high of $457.22.

The positive revaluation for TD Cowen is largely due to Strategy’s continued ability to access financial capital, highlighted by the preferred issuance of Stretch (STRC) shares, which allowed the company to stack BTC in a way that Bernstein believes is better for MSTR shareholders.

“Since the last earnings call, treasury activity has been dominated by preferred stocks issuance, raising ~$1.95 billion vs. minimal common stock issuance, and pretty much everything proceeds are deployed into Bitcoin purchases,” analysts wrote, adding that the company has already surpassed its previous predictions for Bitcoin purchases by mid-quarter.

“Importantly, this activity continues to drive BTC per share growth despite increasing dilution, reflecting the positive nature of the company’s financing model,” they noted.

Thanks to the preference share issue, the company was able to increase its lead Nearly 25,000 Bitcoins were worth about $2 billion last weekexpanding the leading Bitcoin balance to 843,738 BTC, worth approximately $64.7 billion at the time of writing.

In addition to the huge Bitcoin purchase, also Strategy has repaid approximately $1.5 billion of convertible debt Last week, analysts called it a move that was “clearly positive for both shareholders and creditors.”

“We view this as an important signal of financial flexibility,” they wrote. “While Strategy may replenish portions of its USD reserve over time, we expect continued access to capital markets will support, rather than limit, continued Bitcoin accumulation.”

Bitcoin fund company Strive Asset Management (ASST), which has followed in Strategy’s footsteps with the recent launch of a dividend-paying preferred equity product, also received a target price increase from TD Cowen.

The company, which will pay daily dividends on SATA preference shares from June 16, outstanding debts are eliminated last week to focus on the preferred stock play. TD Cowen believes shares of ASST, currently trading around $15.41, could rise to $30 – a gain of almost 94% from where they are today.