Wall Street Backs StrategyS Bold Bitcoin Move
Michael Saylor’s Strategy is ramping up its Bitcoin (BTC) acquisitions, and wall Street is on board. Two prominent firms, Benchmark and TD Cowen, have endorsed the company’s aggressive plans.
Mark Palmer, an analyst at Benchmark, highlighted Strategy’s early advantage.He noted the firm’s notable growth in Bitcoin holdings and set a $650 price target, up from the current $395. Palmer believes Strategy’s platform scalability will boost its ability too accumulate more BTC.
Strategy’s CEO, Michael Saylor, plans to use both common stock and debt to increase Bitcoin holdings. The company aims to raise $84 billion, with equal parts from debt and stock offerings. This move could double Strategy’s capital plan to $42 billion in equity and $42 billion in fixed income for BTC purchases.
Wall Street analysts are bullish on Strategy. TD Cowen’s lance Vitanza set a $550 price target. Strategy’s $111 billion market cap adds credibility to the ambitious plans.
Strategy holds 553,555 bitcoins, about 2.5% of the total supply. While the company has outperformed Bitcoin, its leveraged position carries risks. A significant BTC price drop could make Strategy’s debt unsustainable, potentially causing a ripple effect in the Bitcoin market.
