Strategy (MSTR), the company led by Bitcoin bull Michael Saylor, is drawing Wall Street optimism after another wave of massive Bitcoin purchases. In a new report, top TD Cowen analyst Lance Vitanza raised his price target on MSTR stock to $400 from $395 while maintaining a Buy rating. The new price target implies about 143% upside from current levels. The 5-star analyst said Strategy’s aggressive Bitcoin buying and improving balance sheet continue to support the bullish outlook on the stock.
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For context, between May 11 and May 17 alone, the company bought 24,869 Bitcoin worth about $2.01 billion. The purchase marked one of Strategy’s biggest weekly Bitcoin buys this year.
Why This Top Analyst Is Upbeat About Strategy Stock
According to Vitanza, Strategy’s Bitcoin buying activity during Q2 has already moved ahead of earlier expectations. The analyst now expects the company to acquire nearly 100,000 Bitcoin during the quarter alone.
Notably, Strategy currently holds about 843,738 Bitcoin, giving it ownership of more than 4% of Bitcoin’s total 21 million supply.
Vitanza also highlighted Saylor’s funding strategy under the company’s “42/42 Plan.” Instead of relying heavily on common stock sales, Strategy has increasingly raised money through its STRC perpetual preferred shares. During Q2, the company raised about $1.95 billion through the offering and used most of the proceeds to buy more Bitcoin.
TD Cowen added that investor concerns about shareholder dilution appear overstated, noting that the annual preferred dividend payout equals only about 2.2% of Strategy’s Bitcoin reserves. The firm also raised its 2026 Bitcoin yield estimate to 19.8% from 18.2%.
Debt Reduction Also Strengthened the Bullish Case
Another factor supporting the analyst’s bullish view was Strategy’s recent balance sheet improvement. The company retired about $1.5 billion of convertible debt at roughly an 8% discount to face value.
According to Vitanza, the move helps lower refinancing risk and improves the company’s financial position. The firm’s new $400 price target also reflects higher projected Bitcoin gains and expectations that Bitcoin could reach $140,000 by the end of 2026.
Is Strategy a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Strong Buy consensus rating on MSTR stock based on 12 Buys and 1 Hold assigned in the past three months, as indicated by the graphic below. Furthermore, the average MSTR price target of $324.67 per share implies 97.21% upside potential.
