TD Cowen has increased its price target for Strategy shares after the company continued aggressively expanding its Bitcoin holdings during the second quarter of 2026.
The brokerage believes Strategy’s latest Bitcoin purchases, along with its debt management efforts, have strengthened the company’s financial position and improved Bitcoin exposure per share.
TD Cowen raises Strategy price target
In a new research note, TD Cowen analysts Lance Vitanza and Jonnathan Navarrete raised their price target on Strategy stock from $395 to $400 while maintaining a Buy rating.
The analysts said the decision was driven by stronger-than-expected Bitcoin accumulation during Q2. According to the report, Strategy purchased more Bitcoin during the quarter than TD Cowen had originally expected for the entire period.
The updated target suggests more than 140% upside from Strategy’s recent closing price of $166.63.
Strategy adds nearly 25,000 Bitcoin in one week
Earlier this week, Strategy revealed in a Form 8-K filing that it acquired 24,869 BTC between May 11 and May 17 for approximately $2.01 billion.
The company said it paid an average price of about $80,985 per Bitcoin, including fees and expenses.
Following the latest purchase, Strategy’s total Bitcoin holdings reached 843,738 BTC. That represents more than 4% of Bitcoin’s total fixed supply of 21 million coins.
Company filings also showed:
- Total Bitcoin investment: roughly $63.87 billion
- Average acquisition cost: about $75,700 per BTC
- Estimated Q2 Bitcoin purchases: around 100,000 BTC
Preferred equity funding boosts Bitcoin strategy
TD Cowen noted that Strategy relied heavily on preferred equity offerings instead of common stock issuance during the quarter.
According to the report:
- The company raised nearly $1.95 billion through preferred equity sales
- Common stock dilution remained relatively limited
- Most of the capital raised was used directly for Bitcoin purchases
The analysts believe this financing approach benefits shareholders because Bitcoin accumulation has continued growing faster than dilution from new share issuance.
By May 17, Strategy reportedly held 2.21 Bitcoin per 1,000 fully diluted shares, up from 1.95 at the end of 2025.
Convertible debt buyback strengthens balance sheet
Strategy also moved to reduce future debt-related risks through a convertible note repurchase program.
The company agreed to repurchase approximately $1.5 billion worth of 2029 convertible notes for around $1.38 billion. TD Cowen said the buyback was completed at an 8% discount to face value.
Analysts believe the move:
- Reduces future dilution risks
- Improves the company’s credit profile
- Strengthens refinancing flexibility
- Enhances long-term balance sheet stability
Michael Saylor hints at new purchases
Before the latest Bitcoin acquisition became public, Strategy co-founder Michael Saylor hinted at the purchase on X by posting “Big dot energy” alongside the company’s Bitcoin tracker chart.
Saylor has frequently shared similar posts ahead of previous Bitcoin purchase announcements, making them closely watched by investors and crypto traders.
Why TD Cowen remains bullish on Strategy
TD Cowen calculated its new $400 valuation using:
- A 3x multiple on projected 2026 Bitcoin Dollar Gain estimates
- Estimated year-end Bitcoin holdings worth around $132.9 billion
- Adjustments for debt and preferred equity obligations
The brokerage also increased its full-year BTC Yield estimate to 19.8%, up from 18.2%.
Analysts believe Strategy’s continued Bitcoin accumulation, combined with improving financing efficiency, could significantly increase shareholder value if Bitcoin prices continue rising.
Strategy continues leading corporate Bitcoin adoption
Strategy remains the world’s largest corporate Bitcoin holder and continues to build its identity around Bitcoin treasury accumulation.
The company’s aggressive approach has made it one of the most closely watched Bitcoin-linked stocks on Wall Street, with investors viewing it as a leveraged play on long-term Bitcoin price growth.
