Strategy's $84B Bitcoin Expansion Plan Gets Backing from Wall Street Analysts
Bulls at Benchmark and TD Cowen see the move by Michael Saylor and his team as a bold but feasible expansion of their Bitcoin-focused strategy amid growing interest from institutional investors.
Author: Helen Brown | Edited by: Stephen Alpher Updated: May 2, 2025, 6:35 PM Published: May 2, 2025, 2:34 PM
What you should know:
- Benchmark and TD Cowen reiterated their “buy” ratings, describing the new capital-raising strategy as ambitious but realistic.
- The strategy now targets 25% returns on Bitcoin and $15 billion in BTC profit by 2025, exceeding previous estimates.
- The company has already raised $28.3 billion and plans to raise another $56.7 billion over the next 32 months.
Wall Street analysts are firmly backing Strategy's (MSTR) aggressive expansion of its Bitcoin (BTC) acquisition strategy after the company unveiled plans to double down on its capital-raising ambitions.
“With more companies looking to replicate Strategy’s Bitcoin acquisition strategy, MSTR was reminded yesterday of the scale of its first-mover advantage and how its ability to accelerate Bitcoin accumulation continues to grow with the scale of its platform,” Benchmark’s Mark Palmer said, reiterating his Buy rating and $650 price target.
While MSTR trades at more than double the value of its bitcoin holdings, Palmer finds the level “attractive” thanks to Chairman Michael Saylor and the team's “proven ability to create shareholder value through treasury operations.”
On Thursday evening, as it released its first-quarter results, Strategy announced an expansion of its recent 21/21 plan — raising $42 billion through common stocks and bonds (or debt-like securities) — to a total of $84 billion.
Meanwhile, TD Cowen’s Lance Vitanza noted the ambition of the updated strategy, describing it as “perhaps aggressive, but not impossible.” The company noted that Strategy has already raised $28.3 billion under its original 21/21 plan, and that the company’s significantly larger market cap of $111 billion and deep trading liquidity lend credibility to the new fundraising effort. With average daily volume of $5.6 billion per share, Vitanza, reiterating his “buy” rating and $550 price target, suggested that raising another $56.7 billion over the next 32 months is realistic.
Both analysts also praised Strategy’s decision to raise its Bitcoin-related targets, including increasing its 2025 BTC return target to 25% (from 15%) and BTC gains to $15 billion (from $10 billion). Benchmark’s Palmer noted that the company has already achieved roughly 90% of its initial BTC return target in just four months.
MSTR shares rose 1.8% to $388 early Friday as Bitcoin continued to hover around the $97,000 level.
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