TD Cowen maintains the target price for MicroStrategy (MSTR) stock at $680, forecasting that the company will accumulate about 900,000 BTC (4.3% of total supply) by the end of 2027, when Bitcoin is expected to reach $232,000.

In the past week, Michael Saylor's MicroStrategy has purchased an additional 430 BTC worth $51.4 million, primarily through the issuance of preferred stock. This move is controversial as the company had previously committed to limiting stock dilution when the mNAV ratio is below 2.5x, but has now relaxed this principle.

TD Cowen describes MicroStrategy as "a new type of company," turning market demand for volatility and profits into Bitcoin, while expecting MSTR to potentially be added to the S&P 500 index, benefiting from a clearer tax framework and advancements in cloud technology.

Currently, MSTR trades around $363, while Bitcoin is above $116,000. The company holds over 3% of the BTC supply and has just reported a record net profit of $10 billion for the quarter.