Wall Street analysts are showing strong support for Strategy’s (MSTR) ambitious plan to expand its bitcoin acquisition strategy, following the company’s announcement of its intention to double its capital-raising goals. With growing institutional interest in bitcoin, analysts from Benchmark and TD Cowen praised the move as a bold, yet realistic step forward in the company’s long-term strategy.
Benchmark’s Mark Palmer expressed confidence in Strategy’s leadership under Executive Chairman Michael Saylor, emphasizing the company’s first-mover advantage and its ability to accelerate its bitcoin accumulation efforts. Palmer reiterated his buy rating and set a $650 price target, citing the company’s demonstrated success in creating shareholder value through its treasury operations.
Despite MSTR trading at more than twice the value of its bitcoin holdings, Palmer views this as “attractive” due to Saylor and the team’s track record of maximizing shareholder returns. He noted that the company’s platform has scaled effectively, allowing it to increase its bitcoin acquisitions significantly.
Alongside reporting its first-quarter earnings, Strategy unveiled an expansion of its previous 21/21 Plan, increasing its target to $84 billion, up from an earlier goal of $42 billion. This updated target involves raising funds through common stock and debt issuance.
TD Cowen’s Lance Vitanza also acknowledged the scale of the new strategy, calling it “aggressive, perhaps, but by no means out of reach.” He pointed out that Strategy had already raised $28.3 billion under the initial 21/21 Plan and now enjoys a significantly larger market cap of $111 billion and deep liquidity, which enhances the feasibility of its expanded fundraising goal. With an average daily share volume of $5.6 billion, Vitanza, who maintained a buy rating and a $550 price target, believes raising an additional $56.7 billion over the next 32 months is achievable.
Both analysts praised the company’s increased performance targets for its bitcoin holdings, including raising its 2025 BTC Yield target to 25% (up from 15%) and its BTC $ Gain target to $15 billion (from $10 billion). Palmer highlighted that Strategy had already achieved nearly 90% of its original BTC Yield goal within just four months, underscoring the company’s rapid progress.
On the day following the earnings report, MSTR shares rose by 1.8% to $388, as bitcoin continued to hover just below the $97,000 mark.
Key Takeaways from the Earnings Call
In the earnings call, Michael Saylor reiterated his belief in the growing adoption of the bitcoin standard, saying, “As more companies adopt bitcoin, it legitimizes the asset and attracts additional capital. This growing network of companies stabilizes bitcoin and drives up its price, accelerating the transition to a bitcoin-based economy.”
CEO Fong Li addressed concerns about dilution related to the company’s equity raises, emphasizing that issuing equity at a value higher than its mNAV (market Net Asset Value) is “accretive, not dilutive.” He explained that as mNAV rises, equity issuance begins to resemble fixed income, which could make the market more efficient.
Despite facing a $5.9 billion unrealized loss in Q1 due to fluctuations in bitcoin’s price, CFO Andrew Kang remained optimistic, stating, “We believe the transparency provided by our accounting practices is crucial. We expect positive fluctuations over time, in line with our long-term strategy.”
