Analysts at TD Cowen have maintained a buy rating for MicroStrategy shares while keeping the price target at $260. Despite positive forecasts for Bitcoin, experts warn that the company's financial obligations and issuance of new securities may limit potential returns for common shareholders.
The report highlights that the dilution of shares through new offerings could cause the amount of Bitcoin per share to grow slower than the company's total reserves. Additionally, debt obligations and preferred shares, such as STRC, STRF, and STRD, receive priority payments, which diverts capital away from Bitcoin acquisitions.
While the company's focus on building cash reserves and servicing preferred stock improves financial stability, it reduces the immediate capacity for cryptocurrency accumulation. As of early October, MicroStrategy holds 848 000 BTC, valued at approximately $73 billion, following a recent purchase of 334 BTC.
TD Cowen projects Bitcoin prices to reach $109 000 by the end of 2026 and $280 000 by 2029. Analysts suggest that while rising Bitcoin prices will likely improve the firm's financial performance, the current capital allocation strategy remains a key factor for investors to monitor.
