TD Cowen Maintains Stratygy Target Price at $680… "Expected to Hold 900,000 Bitcoins by 2027"

Stratygy (formerly MicroStrategy) is expected to increase its Bitcoin (BTC) holdings by about 1.5 times over the next two years, according to an analysis.

On the 18th (local time), The Block, a media outlet specializing in crypto assets, reported that US investment bank TD Cowen stated in a report, "Stratygy will hold 900,000 Bitcoins, equivalent to 4.3% of the total Bitcoin supply by 2027," and maintained its previous target price of $680.

The previous day, Stratygy closed at $363.60, down 0.74% during intraday trading.

Last week, Stratygy made an additional purchase of 430 Bitcoins with funds raised through the issuance of new preferred shares. This move sparked controversy in the market. Previously, Stratygy had stated that it would not further dilute equity as long as its market net asset value (mNAV) was less than 2.5 times its Bitcoin holdings, but this time it did not adhere to that rule. Currently, Stratygy holds 629,376 Bitcoins.

However, TD Cowen noted, "Stratygy has shifted from simple defensive reserves to an opportunistic strategy aimed at maximizing shareholder value," and predicted, "It will continue to purchase Bitcoins by issuing bonds and preferred shares in the future."

Additionally, TD Cowen cited possible inclusion in the S&P 500, clear regulation of Bitcoin, and growth in the cloud sector as factors supporting Stratygy's share price.