TD Cowen has increased its price target for Strategy stock to $400 from $395 after the company expanded its Bitcoin holdings faster than expected and strengthened its balance sheet through debt restructuring.
The investment firm maintained its Buy rating on Strategy, pointing to rising Bitcoin accumulation and improving financial flexibility as key reasons behind the higher target.
TD Cowen raises Strategy price target to $400, citing faster Bitcoin accumulation & accretive deleveraging. Can the momentum last? #Strategy #Bitcoin pic.twitter.com/urPzEpkSwd
— TuananhKat (@kat_tuananh) May 19, 2026
Analysts Lance Vitanza and Jonnathan Navarrete said Strategy’s aggressive Bitcoin acquisition strategy continues to support growth in Bitcoin exposure per share despite ongoing capital raises.
Strategy Bitcoin treasury expansion is faster than expected
Strategy has relied heavily on preferred equity issuance during the second quarter, raising about $1.95 billion while issuing very little common stock.
According to TD Cowen, nearly all the funds raised were deployed into Bitcoin purchases, allowing the company to surpass earlier forecasts for the quarter.
The firm now expects Strategy to acquire around 100,000 BTC in Q2 alone, pushing its projected 2026 BTC Yield to 19.8%, up from the earlier estimate of 18.2%. TD Cowen also increased its full-year BTC Dollar Gain forecast to $15.16 billion from $13.89 billion.
Strategy currently holds 843,738 BTC, after purchasing an additional 24,869 BTC, worth about $2.01 billion, between May 11 and May 17. The latest acquisition marked its biggest weekly Bitcoin purchase since April.
The company now controls more than 4% of Bitcoin’s maximum supply of 21 million coins.
Debt buyback improves balance sheet position
Beyond Bitcoin accumulation, TD Cowen highlighted Strategy’s repurchase of approximately $1.5 billion worth of convertible notes at an 8% discount.
The move reduced future dilution risks, improved credit quality and lowered refinancing pressure. The firm said the transaction demonstrates stronger financial flexibility while reducing fully diluted share exposure.
Strategy’s Bitcoin Holdings drive long-term bull case
TD Cowen’s new $400 target is based on a valuation model tied to projected Bitcoin gains and future BTC holdings.
The firm estimates that Strategy could hold Bitcoin assets worth about $132.9 billion by year-end while carrying lower debt obligations.
Strategy shares closed at $166.63 on Monday, leaving TD Cowen’s target implying more than 140% upside, as Bitcoin remains central to the company’s growth strategy.
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