Strategy Adds $2B Bitcoin, Retires $1.5B Debt as TD Cowen Lifts Target to $400
Strategy added $2 billion of Bitcoin funded through preferred equity, boosting holdings to 843,738 BTC valued at $64.7 billion and prompting TD Cowen to lift its 12-month target by $5 to $400 per share. The firm also retired $1.5 billion in convertible debt, enhancing financial flexibility.
1. Price Target Boost to $400
TD Cowen analysts raised Strategy’s price target by $5 to $400 per share, projecting a 139% increase over the next 12 months based on faster-than-expected Bitcoin accumulation and strengthened balance sheet flexibility.
2. $2 Billion Bitcoin Acquisition
The firm used proceeds from nearly $1.95 billion in preferred equity issuance to purchase roughly 25,000 Bitcoin last week, expanding its treasury to 843,738 BTC valued at about $64.7 billion.
3. Convertible Debt Retirement
Strategy retired approximately $1.5 billion of convertible debt, a move that reduces leverage and signals increased financial flexibility for both equity holders and creditors.
4. Financial Strategy and Market Impact
Preferred stock offerings continue to drive BTC per share accretion despite dilution, while shares trade around 64% below their 52-week high, reflecting market caution as the company pursues aggressive accumulation plans.