TD Cowen Sees New Bitcoin Rival, Twenty One, as a Positive for MSTR’s Long-Term Strategy
Michael Saylor’s bold Bitcoin investment strategy, which has sparked both support and skepticism, is facing a new challenger. But according to Wall Street analysts, this competition might actually strengthen Saylor’s position and affirm his long-term vision.
A new bitcoin-focused investment firm, Twenty One, launched by SoftBank, Tether, and Cantor Fitzgerald, is making waves in the cryptocurrency market. With plans to hold bitcoin as its primary business strategy, Twenty One will debut with nearly $4 billion worth of BTC on its balance sheet. This massive holding would immediately place the company as the third-largest publicly-held bitcoin treasury.
While the entry of such a significant player could typically be seen as a threat to the market share and capital-raising potential of established firms, TD Cowen analysts Lance Vitanza and Jonnathan Navarrete argue that it actually serves to validate Saylor’s bitcoin strategy. In fact, the analysts believe that the launch of Twenty One represents the most significant endorsement of Saylor’s strategy yet, making them “incrementally bullish” on MSTR’s future.
The analysts suggest that Twenty One’s emergence could sway institutional investors, who have been skeptical of MSTR’s approach, into seeing the value in Saylor’s long-term bitcoin accumulation plan. Additionally, the entrance of such a high-profile player into the bitcoin space would likely increase demand for the digital asset, which could offset any potential pressures on MSTR’s capital costs and attract further investment into bitcoin.
“This aligns with Michael Saylor’s vision of more companies adopting a similar strategy,” Vitanza and Navarrete noted, referencing Saylor’s long-standing advocacy for corporate bitcoin holdings.
TD Cowen has maintained a $550 price target for MSTR, forecasting that by the end of fiscal year 2027, the company could hold as much as 757,000 BTC, or approximately 3.6% of the total bitcoin supply. At an estimated average bitcoin price of $170,000 per coin by 2027, this stash could be valued at a staggering $129 billion.
The market is already reflecting the growing optimism surrounding this rivalry. Since the announcement, shares of Cantor Equity Partners (CEP), the SPAC vehicle for Twenty One, have surged by as much as 130%, while MSTR stocks have held steady.
