Bitcoin's Corporate Treasure Hunt: Strategy's Bold Move to Stack 6,700 BTC Sparks Debate
In a move that’s turning heads in the crypto world, TD Cowen predicts that Strategy, a major player in the Bitcoin space, is set to add a whopping 6,700 bitcoins to its corporate treasury. But here's where it gets controversial: this comes on the heels of their €620 million ($715 million) issuance of STRE, their first euro-denominated preferred stock. Is this a genius financial strategy or a risky bet? Let’s dive in.
The Euro-Backed Bitcoin Play
TD Cowen, a leading research and brokerage firm, believes Strategy’s recent STRE offering marks a significant milestone. Analysts Lance Vitanza and Jonnathan Navarrete explained in a client note that this perpetual Stream preferred stock, priced at €80 per share, isn’t just another financial instrument—it’s Strategy’s ticket into the euro-based bitcoin-backed credit markets. This opens up a fresh funding avenue for their BTC treasury model, which has been a cornerstone of their growth.
Where the Money Goes
With €608.8 million in net proceeds, TD Cowen projects Strategy will use “substantially all” of it to purchase 6,720 BTC at an average price of $104,500. But this isn’t just about buying Bitcoin; it’s about expanding their bitcoin-per-share ratio, a key metric for their investors. After accounting for common-share issuance to fund STRE dividends over the next decade, TD Cowen estimates a net gain of 4,235 BTC. This move is expected to boost Strategy’s year-to-date bitcoin yield to over 27%, inching closer to their ambitious 30% target for 2025.
The Controversial Question: Is This Sustainable?
While Strategy’s approach—issuing preferred securities to raise capital and buying Bitcoin—has been a major driver of their success, it’s not without risks. Critics argue that relying heavily on capital markets could backfire if market conditions sour. TD Cowen acknowledges this in their bear case scenario, where Bitcoin acquisitions could be suspended due to unfavorable conditions. But here’s the kicker: even in their base-case scenario, they predict Bitcoin will hit $141,277 by year-end, with an upside potential of $160,000. Bold? Absolutely. Realistic? That’s up for debate.
STRC: The Unsung Hero
And this is the part most people miss: Strategy’s variable-rate Stretch preferred stock (STRC) program has been quietly funding a significant portion of their Bitcoin acquisitions. Last week alone, they raised $26.2 million through STRC, outpacing all other preferred classes combined. These shares are designed to trade near $100 par, with a current dividend rate of 10.5%, offering stability in a volatile market.
The Numbers Don’t Lie
Strategy now holds a staggering 641,692 BTC, valued at around $67 billion. TD Cowen has expanded its preferred-stock coverage, initiating buy ratings on both STRE and STRC shares. They’ve set a €119 ($138) target for STRE, backed by 5.2x coverage from Bitcoin holdings, and a $100 par target for STRC, with 5.5x coverage. Meanwhile, their existing STRF, STRK, and STRD classes also received buy ratings, with price targets reflecting their strong Bitcoin coverage ratios.
The Bigger Picture
TD Cowen’s broader Bitcoin outlook is bullish, with a base-case assumption of $141,277 by December 31. Their upside scenario pushes this to $160,000, while their bear case drops to $60,000. These predictions hinge on Strategy’s ability to maintain its quarterly Bitcoin acquisitions, which could exceed $4.5 billion in the best-case scenario.
The Final Verdict
TD Cowen maintains a $535 price target on Strategy’s MSTR common stock, a 124% upside from Monday’s closing price. By December 2027, they forecast Strategy will hold around 815,000 BTC. But the real question is: Can Strategy sustain this momentum, or are they building a house of cards? We want to hear from you—do you think Strategy’s Bitcoin-focused strategy is a game-changer or a risky gamble? Let us know in the comments below!
Disclaimer: This article was produced with the assistance of advanced AI tools and reviewed by our editorial team. The Block operates independently, delivering objective and timely information about the crypto industry. As of November 2023, Foresight Ventures is a majority investor in The Block, with investments in other crypto companies. Bitget serves as an anchor LP for Foresight Ventures. For full financial disclosures, visit our website. © 2025 The Block. All Rights Reserved. This content is for informational purposes only and should not be considered financial advice.
