TD Cowen raised its price target on Strategy (MSTR) to $400, pointing to bitcoin’s strong rally and changes in investment strategies as key drivers of potential upside. With the stock price close to $166, the new target represents a gain of more than 140%.
The exchange maintained its buy price, citing faster-than-expected bitcoin purchases and capital changes that support bitcoin’s growth on a per-share basis. Strategy, led by executive chairman Michael Saylor, now they hold 843,738 BTC, worth about $64 billion. That position represents more than 4% of the total number of bitcoins.
Professionals he realized that the company exceeded its forecast for buying bitcoin during the current quarter. Between May 11 and May 17, Strategy earned 24,869 BTC worth about $2.01 billion. TD Cowen now expects the company to buy close to 100,000 BTC in the second quarter of this year alone.
A central metric for solid points is bitcoin per 1,000 units fully diluted, which has risen to 2.21 from 1.95 at the end of 2025. This increase shows that bitcoin accumulation has passed the dilution from sharing, a major concern among investors following the strategy of aggressive capital approach.
Strategy is preferred
The company used it recently lovely justice has played a major role in that power. In the second quarter, Strategy raised about $1.95 billion through preferred shares, with most of the money going toward buying bitcoin. TD Cowen sees this strategy as less expensive than traditional issuance and better for shareholders.
At the same time, Strategy has taken steps to improve its credit rating. The company repurchased approximately $1.5 billion in convertible notes at a lower cost, a move that reduces the risk of future repayments and reduces dividend dilution. Analysts explained that the sale is a good sign for both borrowers and lenders.
TD Cowen’s valuation system uses multiples of bitcoin’s earnings and combines expectations, debt, and preferences. The company makes profits related to bitcoin more than $ 15 billion in 2026, supporting the high price.
Despite the growing sentiment, Strategy stocks remain volatile and tied to bitcoin price movements. Shares have fallen nearly 60% in the past year and are sitting below a 52-week high of $450. The recent decline of bitcoin has also affected the stock, strengthening its position as a reliable project in the digital economy.
