Wall Street backs Strategy’s Bold Bitcoin Move
Michael Saylor’s Strategy is ramping up its Bitcoin (BTC) acquisitions, and two major Wall Street firms are on board. Benchmark and TD Cowen analysts have endorsed the company’s aggressive plans.
Mark Palmer, an analyst at Benchmark, highlighted Strategy’s early advantage. He noted the firm’s important growth in Bitcoin holdings, setting a $650 price target from its current $395. Palmer believes Strategy’s ability to accumulate Bitcoin has increased as its platform scales.
Strategy’s CEO, Michael Saylor, plans to use common stock and debt to boost Bitcoin holdings. The company aims to raise $84 billion,split equally between debt and stock offerings.
Strategy recently announced a BTC yield of 13.7% and a $5.8 billion gain year-to-date. The firm doubled its capital plan to $42 billion in equity and $42 billion in fixed income for Bitcoin purchases. It also raised its BTC yield target from 15% to 25% and its BTC gain target from $10 billion to $15 billion.
TD Cowen analyst Lance Vitanza supports the plan, citing Strategy’s $111 billion market cap. He set a $550 price target. strategy holds 553,555 Bitcoins, about 2.5% of the total supply.
While Strategy’s performance is strong, its highly leveraged position carries risks. A drop in BTC price could make the company’s debt unsustainable. If Strategy sells BTC to pay debts, it could negatively impact the Bitcoin market.
