TD Cowen lifts MicroStrategy 12-month target to $400

TD Cowen raised its 12-month price target for MicroStrategy Inc. (MSTR) to $400 per share, up $5 from a prior $395 target, after the company used proceeds from its Stretch (STRC) preferred stock offering to buy about $2 billion of Bitcoin.

The firm projected potential upside of roughly 139% for MSTR shares over the next 12 months. MicroStrategy disclosed it acquired nearly 25,000 BTC during the past week after issuing preferred shares that carry an 11.5% annual dividend.

TD Cowen noted MicroStrategy raised about $1.95 billion through preferred equity issuance this quarter, with substantially all proceeds deployed into Bitcoin purchases. Analysts wrote that treasury operations continue to exceed expectations, with faster-than-anticipated Bitcoin accumulation and balance sheet actions driving higher BTC per share and improved financial flexibility.

Last week MicroStrategy retired about $1.5 billion of convertible debt. TD Cowen described the debt retirement as positive for equity holders and creditors and said it reflects improved financial flexibility for the company.

At the time of the recent purchases MicroStrategy reported roughly 843,738 BTC on its balance sheet, valued at about $64.7 billion. MSTR shares traded near $164 shortly after the opening bell on Tuesday, about 64% below the 52-week high of $457.22.

TD Cowen noted that ongoing access to capital markets, including preferred equity investors, should support continued Bitcoin accumulation. The research note raised the 12-month target for Strive Asset Management (ASST) to $30 and said ASST will begin paying daily dividends on preferred shares starting June 16.

MicroStrategy’s Stretch (STRC) preferred crossed its ex-dividend date last week, making investors who bought before the deadline eligible for the next monthly cash distribution.