TD Cowen lifts Strategy price target to $400 following $2 billion Bitcoin acquisition

Analysts at TD Cowen have increased their 12-month price target for Bitcoin treasury firm Strategy (MSTR) by $5 per share to $400, implying a potential 139% upside from recent trading levels. The upgrade follows the company’s announcement of a $2 billion Bitcoin acquisition over the preceding week, funded largely through preferred equity issuance. TD Cowen highlighted the firm’s financial flexibility and faster-than-anticipated Bitcoin accumulation as key drivers for the re-rating.

Strategy’s preferred equity issuance, titled 'Stretch' (STRC), raised approximately $1.95 billion, with substantially all proceeds deployed into Bitcoin purchases. This move allowed the firm to acquire nearly 25,000 Bitcoin in the last week, extending its total holdings to 843,738 BTC, valued at approximately $64.7 billion. TD Cowen noted that the company has already outpaced its previous forecasts for Bitcoin purchases midway through the quarter.

The analysts emphasised that Strategy’s financing model remains accretive, driving growth in Bitcoin per share despite rising dilution from equity issuances. “Since the last earnings call, treasury activity has been dominated by preferred equity issuance,” TD Cowen wrote, adding that the firm has raised roughly $1.95 billion via this method versus minimal common equity issuance. They described the activity as a clear signal of financial flexibility, noting that access to capital markets is expected to support ongoing accumulation rather than constrain it.

In addition to the Bitcoin purchases, Strategy retired around $1.5 billion in convertible debt last week. TD Cowen described this debt retirement as a “clear positive for both equity holders and creditors,” reinforcing their view that the company’s balance sheet actions are improving financial stability. While Strategy may replenish portions of its USD reserve over time, the firm’s sustained ability to access financial capital remains a central pillar of the analysts’ bullish thesis.

TD Cowen also raised its price target for Strive Asset Management (ASST) to $30, reflecting a potential 94% gain. The upgrade follows the firm’s launch of a dividend-paying preferred equity product and its decision to eliminate outstanding debt to focus on the preferred stock strategy. Strive Asset Management will begin paying daily dividends on preferred shares (SATA) starting June 16. At the time of the report, ASST shares were trading around $15.41.

Meanwhile, Strategy (MSTR) shares were trading around $164.79 at the time of the report, down approximately 1.1% on the day. The stock remains nearly 64% off its 52-week high of $457.22, though the new price target suggests significant room for recovery according to the firm’s latest analysis.