Investment bank TD Cowen has reaffirmed its bullish stance on MicroStrategy (MSTR), declaring the company’s significant premium valuation justified due to its aggressive Bitcoin acquisition strategy. The firm sees substantial potential for the stock as MicroStrategy’s holdings of the leading cryptocurrency continue to grow rapidly.
Analysts highlighted a key metric: each share of MSTR now represents ownership in 20.8% more Bitcoin compared to the start of the current year. This increase underscores the strategy’s effectiveness in growing Bitcoin exposure for shareholders.
TD Cowen maintains a price target of $680 for MicroStrategy shares. The bank further predicted that, continuing its current trajectory, MicroStrategy’s Bitcoin treasury could swell to nearly 900,000 BTC by the year 2027.
This projection emphasizes TD Cowen’s conviction that MicroStrategy’s ‘Bitcoin treasury flywheel’ strategy – utilizing equity offerings to fund further Bitcoin purchases, thereby increasing asset value per share and enabling more capital raises – remains a sustainable and potent model driving the company’s growth and stock performance.