Strategy’s $84B Bitcoin $BTC Expansion Plan Backed by Wall Street Analysts

Sell-side bulls from Benchmark and TD Cowen viewed Michael Saylor and team's plan as a bold yet realistic escalation of its bitcoin-focused strategy amid rising institutional interest.



Benchmark and TD Cowen both reiterated buy ratings, calling the new capital raise strategy ambitious but credible.

Strategy now targets a 25% bitcoin yield and $15B in $BTC gains by 2025, up from previous projections.

The company has already raised $28.3B and aims to bring in another $56.7B over the next 32 months.

"While the number of companies that have sought to replicate Strategy’s bitcoin $BTC acquisition strategy has continued to grow rapidly … MSTR yesterday issued a reminder of the extent of its first-mover advantage and how its ability to accelerate its accumulation of bitcoin has continued to increase as its platform has scaled," wrote Benchmark's Mark Palmer, reiterating his buy rating and $650 price target.

Though MSTR trades at more than double the value of its bitcoin holdings, Palmer says that level is "attractive" thanks to Executive Chairman Michael Saylor and team's "demonstrated ability to create shareholder value through its treasury operations."

Alongside reporting its first quarter results Thursday evening, Strategy announced an expansion of its recent 21/21 plan — raising $42 billion via issuance of common stock and debt (or debt-like securities) — to a total of $84 billion.



Both analysts also praised Strategy’s decision to increase its bitcoin-related performance targets, including raising its 2025 BTC Yield target to 25% (from 15%) and BTC $ Gain to $15 billion (from $10 billion). Benchmark's Palmer pointed out that the company has already achieved ~90% of its original BTC Yield target in just four months.



MSTR shares are higher by 1.8% to $388 early Friday as bitcoin continues to tread water just below the $97,000 level.