MicroStrategy’s $472M BTC Buy, Cowen Lifts MSTR to $680
MicroStrategy raised $472.3 million through common and preferred share issues to acquire 4,225 Bitcoin at an average price of $111,827, bringing its total holdings to 601,550 BTC at a $71,268 cost basis. The 8% convertible (STRK) and 10% (STRF, STRD) preferred shares were priced at a ~20% premium around $124, $125, and $95, offering quarterly dividends and $100 downside protection. TD Cowen upgraded MSTR from $590 to $680 and forecast Bitcoin could hit $155,000 by year-end (base case $128,000; conservative $55,000). Cowen also highlighted MicroStrategy’s “42/42 Plan” to raise $84 billion via equity and bonds to grow reserves to 900,000 BTC by 2027. The firm rated all three preferred classes “buy” with targets of $140 (STRK), $126 (STRF), and $112 (STRD), citing attractive yields and lower volatility compared to common stock or direct Bitcoin exposure. Traders may view these developments as bullish for MSTR and Bitcoin markets.
Bullish
MicroStrategy’s substantial share issuance to fund an additional 4,225 BTC purchase and Cowen’s upgraded MSTR price target reflect strong institutional demand and confidence in Bitcoin. The premium pricing of preferred shares with downside protection and attractive dividends appeals to yield-seeking traders, reducing volatility compared to direct Bitcoin exposure. Cowen’s bullish BTC forecast of $155,000 and the ambitious 42/42 Plan to expand reserves to 900,000 BTC by 2027 further underpin long-term positive sentiment. Collectively, these developments support both short-term upward momentum in MSTR stock and Bitcoin, as well as longer-term market confidence, marking a clear bullish signal.