Analysts at TD Cowen have raised their Bitcoin price forecasts while maintaining a target price of $260 for MicroStrategy shares. They caution that the issuance of new securities and the company’s financial obligations may limit returns for common shareholders. This information was reported by The Block citing the bank's report.
Lance Vitale and Jonathan Navarrete have reiterated a "buy" recommendation for MicroStrategy stock.
As of the latest update, shares of the Bitcoin treasury are trading around $156, reflecting a daily increase of 3.14% and a year-to-date rise of 3.4%.
Stock performance of MicroStrategy since the beginning of 2026. Source: Yahoo Finance.Share Dilution Concerns
While analysts expect that the rising price of Bitcoin will enhance MicroStrategy's financial performance, they highlighted that the benefits for common shareholders may be limited.
TD Cowen identified share dilution from new securities issuance as a primary risk. This could result in the growth of Bitcoin holdings per common share lagging behind the company's total reserves.
Additionally, the company’s debt obligations and preferred shares, including STRC, STRF, and STRD, create further pressure as their holders receive payments ahead of MSTR shareholders.
Some of the funds raised are not allocated for Bitcoin purchases but instead are used to build cash reserves and pay off preferred securities. TD Cowen estimates that this strategy could enhance MicroStrategy's financial stability and facilitate future financing.
However, in the short term, this approach reduces the capital available for accumulating cryptocurrency. Following a recent acquisition of 334 BTC in early October, MicroStrategy's Bitcoin reserves reached 848,000 BTC (approximately $73 billion).
MicroStrategy's Bitcoin reserves. Source: BitcoinTreasuries.TD Cowen also predicts that by the end of 2026, Bitcoin could reach around $109,000, and by 2029, it may rise to $280,000.
In August, TD Cowen and Benchmark reaffirmed their "buy" recommendation for MicroStrategy shares and approved the firm's decision to hold more cash in reserves.
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