2026 has barely brought a respite to shares of Strategy (Nasdaq: MSTR), formerly known as MicroStrategy. Although the stock is up almost 10% this year, performance has been fairly stable over the past month.
Even then, one analyst has raised his price target for Strategy shares for two reasons.
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Quarterly strategy loss prompts possible strategy change
Founded as a software company in 1989, the company led by Michael Saylor turned to Bitcoin amid the coronavirus pandemic in 2020.
It now has 843,738 BTC on its balance sheet, cementing its position as the world’s leading publicly traded Bitcoin corporate treasury.
The current decline in the cryptocurrency market led Strategy to report a loss of $12.54 billion during the first quarter of 2026. In fact, the company recorded an unrealized loss of $14.46 billion on its Bitcoin holdings during the quarter.
During the earnings call following the disappointing results, Saylor even suggested selling a portion of the company’s Bitcoin holdings to pay dividends.
However, so far it has not reached that point and the company has continued to make its weekly Bitcoin purchases.
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TD Cowen Analyst Raises Strategy’s Stock Target
On May 19, TD Cowen raised its price target on Strategy shares, Investing.com reported.
Analyst Lance Vitanza and associate Jonnathan Navarrete highlighted the increase in Bitcoin per share of the firm.
The preferred stock issuance raised about $1.95 billion and dominated the company’s capital raises during the second quarter of 2026. Almost all of the proceeds went to Bitcoin purchases, the analyst noted.
The company has already acquired more Bitcoin so far this quarter than TD Cowen had estimated for the entire quarter.
Vitanza now predicts that the strategy will purchase approximately 100,000 BTC during the second quarter of 2026. The analyst raised full-year BTC yield forecasts from 18.2% to 19.8%, and full-year BTC dollar earnings estimates from $13.89 billion to $15.16 billion.
With the company’s Bitcoin holdings per 1,000 fully diluted shares reaching 2.21x as of May 17, compared to 1.95x at the end of 2025, the analyst called it a “core validation of Strategy’s funding model.”
The analyst highlighted that his Bitcoin holdings continue to outperform share issuance even as dilution increases.