Key Highlights
- Lance Vitanza, analyst at TD Cowen, increased his Strategy price target from $395 to $400, suggesting 143% potential upside, maintaining a Buy recommendation.
- The company acquired 24,869 Bitcoin valued at approximately $2.01 billion during the week of May 11-17, marking one of its largest weekly purchases in 2024.
- Strategy’s total Bitcoin holdings now stand at 843,738 BTC — representing over 4% of the cryptocurrency’s maximum 21 million coin supply.
- The firm successfully retired approximately $1.5 billion in convertible notes at an 8% discount, strengthening its financial position.
- Analyst consensus points to a Strong Buy recommendation with an average target price of $324.67, suggesting approximately 97% upside potential.
TD Cowen has elevated its price target for Strategy (MSTR) to $400 from the previous $395, maintaining its Buy recommendation. The updated projection suggests potential gains of approximately 143% from present trading levels.
The upgraded outlook originates from Lance Vitanza, a 5-star analyst, who highlighted Strategy’s aggressive Bitcoin accumulation strategy and enhanced balance sheet metrics as primary catalysts supporting his bullish stance.
Strategy shares commenced Wednesday’s session at $164.63, declining 1.2% during the trading day. The equity demonstrates a 52-week trading range spanning $104.17 to $457.22, accompanied by a beta coefficient of 3.59, indicating significant price volatility.
During the seven-day period from May 11 through May 17, Strategy accumulated 24,869 Bitcoin for a total investment of roughly $2.01 billion. This acquisition represents one of the firm’s most substantial weekly Bitcoin purchases throughout the current year.
The corporation’s cumulative Bitcoin position has reached 843,738 BTC — representing ownership of more than 4% of Bitcoin’s fixed maximum supply of 21 million coins. No competing publicly traded entity maintains a comparable position.
Vitanza observed that Strategy’s second-quarter Bitcoin acquisitions have already exceeded initial projections. His current forecast anticipates the company will secure nearly 100,000 Bitcoin throughout the quarter.
Strategy’s Capital Raising Approach
Instead of primarily utilizing common equity issuances, Strategy has been generating capital through its STRC perpetual preferred stock program, which CEO Michael Saylor refers to as the “42/42 Plan.” The company successfully raised approximately $1.95 billion via this mechanism during Q2, allocating the majority toward additional Bitcoin purchases.
TD Cowen responded to shareholder concerns regarding dilution, noting that the annualized preferred dividend obligation represents merely 2.2% of Strategy’s Bitcoin treasury. The investment firm also revised its 2026 Bitcoin yield projection upward to 19.8% from the prior 18.2% estimate.
Strategy additionally extinguished roughly $1.5 billion of convertible bonds at approximately 8% below par value. Vitanza indicated this transaction diminishes refinancing exposure while bolstering the company’s aggregate financial standing.
The firm’s $400 valuation target incorporates enhanced Bitcoin price assumptions and anticipates the cryptocurrency could achieve $140,000 by the conclusion of 2026.
Growing Institutional Ownership
ProShare Advisors LLC expanded its MSTR position by 45.7% during the fourth quarter, acquiring an additional 131,014 shares to reach a total holding of 417,790 shares worth approximately $63.5 million.
Additional institutional investors similarly increased their allocations. Sei Investments Co. boosted its MSTR stake by 136% throughout the second quarter. Manufacturers Life Insurance expanded its holdings by 59.4% during the identical timeframe.
Collectively, institutional stakeholders now control 59.84% of Strategy’s total outstanding shares.
Regarding financial performance, Strategy disclosed revenue of $124.30 million for its latest reporting period, exceeding the analyst estimate of $120.75 million. Conversely, earnings per share registered at -$38.25, significantly missing the consensus projection of -$0.86.
The broader Wall Street perspective remains optimistic. With 12 Buy ratings and 1 Hold rating issued over the preceding three months, MSTR maintains a Strong Buy consensus classification. The mean price target stands at $324.67, implying roughly 97% upside from current price levels.
Cantor Fitzgerald confirmed its Overweight rating on May 11. Benchmark preserved its Buy recommendation with a $570 target on May 6, representing a reduction from its previous $705 objective.
