Strategy’s price target has been raised to $400 based on strong bitcoin accumulation and a shift in financing strategy. Shares trade near $166, implying more than 140% upside. The company holds 843,738 BTC valued around $64 billion, representing over 4% of the total bitcoin supply cap. Purchases have exceeded prior expectations, including 24,869 BTC acquired between May 11 and May 17 for about $2.01 billion. The firm is expected to buy close to 100,000 BTC in the second quarter. Bitcoin per 1,000 fully diluted shares rose to 2.21 from 1.95 at end-2025, indicating accumulation outpacing dilution. Preferred equity issuance funded most purchases, viewed as less dilutive than common stock. Convertible note repurchases at a discount reduce refinancing risk and limit future dilution.
"Strategy now holds 843,738 BTC, valued near $64 billion. That position represents more than 4% of the total bitcoin supply cap. Analysts noted that the company has exceeded prior forecasts for bitcoin purchases during the current quarter. Between May 11 and May 17, Strategy acquired 24,869 BTC for about $2.01 billion. TD Cowen now expects the firm to purchase close to 100,000 BTC in the second quarter of this year alone."
"A central metric for the firm's thesis is bitcoin per 1,000 fully diluted shares, which has risen to 2.21 from 1.95 at the end of 2025. This increase suggests that bitcoin accumulation has outpaced dilution from share issuance, a key concern among investors tracking Strategy's aggressive capital strategy. The firm's recent use of preferred equity has played a major role in that dynamic."
"In the second quarter, Strategy raised about $1.95 billion through preferred share issuance, with most proceeds directed toward bitcoin purchases. TD Cowen views this approach as less dilutive than common stock issuance and more favorable for existing shareholders. At the same time, Strategy has taken steps to improve its credit profile. The company repurchased about $1.5 billion in convertible notes at a discount, a move that reduces future refinancing risk and limits potential share dilution."
"With shares trading near $166, the new target implies a gain of more than 140%. The brokerage maintained its buy rating, citing faster-than-expected bitcoin purchases and a change in capital structure that supports growth in bitcoin per share. Strategy, led by executive chairman Michael Saylor, now holds 843,738 BTC, valued near $64 billion."
#bitcoin-accumulation #financing-strategy #dilution-and-bitcoin-per-share #preferred-equity #convertible-note-repurchases
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