Strategy Stock Could Climb as New Rival Twenty One Validates Its Bitcoin Strategy
New Competitor Twenty One's Bitcoin Strategy Could Boost Strategy Stock
TD Cowen believes that the emergence of Twenty One could transform institutional sentiment and confirm the strength of MSTR’s bitcoin strategy in the long run.
According to TD Cowen, Twenty One mirrors Strategy’s bitcoin-centric approach, reinforcing its treasury strategy. This development is hailed as a major validation of MSTR’s bitcoin treasury model so far. The analysts at TD Cowen have set a price target of $550 for MSTR and anticipate holdings of $129 billion in bitcoin by 2027.
Contrary to popular belief, analysts Lance Vitanza and Jonnathan Navarrete view Twenty One's launch as a substantial endorsement of Strategy's bitcoin treasury practices. They are now more optimistic about the stock's potential.
Strategy Stock Could Climb as New Rival Twenty One Validates Its Bitcoin Strategy
TD Cowen says launch of Twenty One could shift institutional sentiment and validate MSTR’s long-term bitcoin strategy.
- TD Cowen says Twenty One’s bitcoin-focused structure echoes Strategy’s and affirms its treasury strategy.
- It called it the most significant validation yet of MSTR’s bitcoin treasury model.
- The analysts maintained a $550 price target for MSTR and projected $129B in bitcoin holdings by the end of 2027.
Furthermore, the analysts suggest that Twenty One might sway even the most skeptical institutional investors towards embracing Saylor's bitcoin acquisition strategy. Additionally, the increased interest from such a prominent player in buying bitcoin could counterbalance any impact on Strategy’s cost of capital while attracting more investments into bitcoin.
The analysts note that Michael Saylor has long advocated for other companies to adopt similar strategies, which aligns with what this new competition signifies.
The market is already responding positively to this rivalry. Cantor Equity Partners (CEP), the SPAC associated with Twenty One, has seen its shares surge by as much as 130% since the announcement, while MSTR stocks have remained resilient.
The bullish impact of this rivalry is already prominent in the market. The shares of Cantor Equity Partners (CEP), Twenty One's SPAC vehicle, have already climbed as much as 130% since the announcement, while MSTR stocks held strong.
