The Bitcoin strategy giant got a price target boost from TD Cowen after buying $2 billion worth of BTC

Analysts at TD Cowen believe the stock is in Bitcoin Treasury Company strategy (MSTR) could jump as much as 139% to $400 per share in the next 12 months.

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

“Strategic treasury operations continue to exceed expectations, at a faster pace than expected Bitcoin accumulation and accretive balance sheet actions cause Bitcoin price per share to rise “And improving financial flexibility,” TD Coin analysts wrote.

Currently, MSTR shares are down about 1.1%, trading at around $164.79 shortly after the opening bell on Tuesday. At the current price, the company’s shares are now approximately 64% below their 52-week high of $457.22.

TD Cowen’s positive rerating is due in large part to Strategy’s continued access to financial capital, highlighted by the issuance of Stretch Preferred Stock (STRC), which allowed the company to accumulate BTC in a way that Bernstein believes is better for MSTR shareholders.

“Since the last earnings announcement, preferred stocks have dominated treasury activity The issuance, with approximately $1.95 billion raised for the minimum common stock issuance, and nearly all of that “Proceeds were spread across Bitcoin purchases,” the analysts wrote, adding that the company had already beaten its previous forecast for Bitcoin purchases only midway through the quarter.

“Importantly, this activity continues to drive growth in Bitcoin per share despite increased dilution, reflecting the accretive nature of the company’s financing model,” they noted.

The issuance of preferred stock allowed the company to divest Nearly 25,000 bitcoins worth about $2 billion were minted last weekexpanding its Bitcoin-leading balance sheet to 843,738 BTC worth approximately $64.7 billion at the time of writing.

In addition to its massive purchase of Bitcoin, the strategy also… Retired about $1.5 billion of convertible debt Last week, a move analysts described as “a clear positive for both shareholders and creditors.”

“We view this as an important signal of financial resilience,” they wrote. “Although the strategy may replenish portions of its USD reserves over time, we expect continued access to capital markets to support, rather than restrict, continued Bitcoin accumulation.”

Bitcoin treasury firm Strive Asset Management (ASST), which followed in the strategy’s footsteps with the recent launch of a dividend-paying preferred stock product, also received a price target boost from TD Cowen.

The company, which will begin paying daily dividends on SATA preferred stock starting June 16, And get rid of its outstanding debts Last week to focus on playing on preferred stocks. TD Cowen believes ASST shares, currently trading at around $15.41, could jump to $30 — roughly 94% of their current position.