TD Cowen Evaluates Strategy's 'Buy' Timing..."Stock Price Could Soar 140%"

▲ Strategy, Bitcoin (BTC)/AI Generated Image

U.S. Wall Street investment bank TD Cowen has sharply raised Strategy's (Strategy) target price, presenting an aggressive investment opinion. The analysis suggests that the rapid increase in Bitcoin holdings per share and the improvement in financial structure will act as strong positive factors for all shareholders.

According to The Block, a virtual asset specialized media, on May 19 (local time), TD Cowen raised Strategy's target price from the previous $395 to $400 and maintained a Buy opinion. This adjustment is a result of the company's financial activities exceeding expectations, leading to an upward revision of Bitcoin yield and Bitcoin dollar profit estimates for 2026. In the second quarter, Strategy raised approximately $1.95 billion through preferred stock issuance instead of minimizing common stock issuance. TD Cowen reported that almost all of the raised funds were directly invested in Bitcoin purchases. Thereafter, only the Korean name will be used.

As a result, Strategy had already secured more Bitcoin in the ongoing second quarter than TD Cowen had modeled for the entire quarter. TD Cowen predicted that Strategy would purchase approximately 100,000 BTC in the second quarter alone. Accordingly, this year's annual Bitcoin Yield forecast rose from the previous 18.2% to 19.8%. Annual Bitcoin dollar profit estimates also increased from the previous $13.89 billion to $15.16 billion. As of May 17, Bitcoin holdings per 1,000 fully diluted shares were recorded at 2.21 times. This is a significant increase from 1.95 times at the end of 2025. Despite concerns about dilution due to stock issuance, the rate of increase in Bitcoin holdings has overwhelmed this, proving the company's financial model.

The substantial improvement in the financial structure is also a key reason for the upward revision of the target price. Strategy repurchased approximately $1.5 billion worth of out-of-the-money convertible bonds at a discount of about 8% compared to their face value. TD Cowen analyzed that this transaction reduced the risk of stock dilution while improving credit ratings and lowering future refinancing risks. It is described as an important signal demonstrating the company's strong financial flexibility. From May 11 to 17, Strategy invested approximately $2.01 billion to purchase an additional 24,869 BTC. This brings the total holdings to 843,738 BTC, exceeding 4% of the total global Bitcoin supply of 21 million.

The target price of $400 presented by TD Cowen suggests that Strategy's stock price upside potential is still enormous. Strategy closed trading at $166.63 last Monday. This is approximately a 63% decrease from its 52-week high of $455.90. TD Cowen's new target price implies an explosive additional upside potential of over 140% compared to the current stock price. With the synergy between traditional finance's innovative fundraising and the strategy of massive Bitcoin accumulation, Strategy's dominant position is expected to become an absolute variable leading the future trend of the virtual asset-linked stock market.

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