TD Cowen Raises MicroStrategy Target Price to $395, Citing STRC Preferred Stock

News Flash 2026-05-07 21:51

TD Cowen has increased its price target for MicroStrategy (MSTR) from $385 to $395, highlighting the company's strategic use of STRC perpetual preferred shares to enhance bitcoin yield. Analysts Lance Vitanza and Jonnathan Navarrete noted that this financing approach, part of Michael Saylor's "42/42 Plan," is underappreciated by the market and boosts capital efficiency. The new target suggests a potential upside of over 110% from the recent closing price of $186.82. MicroStrategy is shifting from common stock financing to relying more on STRC perpetual preferred shares, which offer an 11.5% yield, to fund bitcoin acquisitions. TD Cowen has adjusted its fiscal 2026 bitcoin yield forecast from 16.7% to 18.2%, and its 2027 forecast from 5.4% to 9.6%. The analysts argue that concerns about dilution are overstated, as the annual preferred dividend payout is only about 2.2% of the value of MicroStrategy's 818,300 BTC reserves. They project bitcoin could reach $140,000 by the end of 2026, with potential to hit $175,000, enabling quarterly bitcoin purchases to surpass $5 billion.

Share to:

This content is for informational purposes only and does not constitute investment advice.

Curated Series

SuperEx Popular Science Articles Column

SuperEx Popular Science Articles Column

This collection features informative articles about SuperEx, aiming to simplify complex cryptocurrency concepts for a wider audience. It covers the basics of trading, blockchain technology, and the features of the SuperEx platform. Through easy-to-understand content, it helps users navigate the world of digital assets with confidence and clarity.

Unstaked related news and market dynamics research

Unstaked related news and market dynamics research

Unstaked (UNSD) is a blockchain platform integrating AI agents for automated community engagement and social media interactions. Its native token supports governance, staking, and ecosystem features. This special feature explores Unstaked’s market updates, token dynamics, and platform development.

XRP News and Research

XRP News and Research

This series focuses on XRP, covering the latest news, market dynamics, and in-depth research. Featured analysis includes price trends, regulatory developments, and ecosystem growth, providing a clear overview of XRP's position and potential in the cryptocurrency market.

How do beginners trade options?How does option trading work?

How do beginners trade options?How does option trading work?

This special feature introduces the fundamentals of options trading for beginners, explaining how options work, their main types, and the mechanics behind trading them. It also explores key strategies, potential risks, and practical tips, helping readers build a clear foundation to approach the options market with confidence.

What are the risks of investing in cryptocurrency?

What are the risks of investing in cryptocurrency?

This special feature covers the risks of investing in cryptocurrency, explaining common challenges such as market volatility, security vulnerabilities, regulatory uncertainties, and potential scams. It also provides analysis of risk management strategies and mitigation techniques, helping readers gain a clear understanding of how to navigate the crypto market safely.