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In a bold move that has captured the attention of the financial world, Wall Street analysts are enthusiastically endorsing Strategy’s (MSTR) recent announcement of an $84 billion expansion plan for its bitcoin (BTC) acquisition strategy. This ambitious approach is set to double the company’s capital-raising ambitions, demonstrating a firm commitment to bitcoin as a foundational asset.
Wall Street Analysts Show Confidence in Strategy’s Bitcoin Vision
Industry experts are taking notice of Strategy’s (MSTR) innovative bitcoin acquisition strategy. Benchmark’s Mark Palmer has reiterated his buy rating and set a price target of $650 for the stock. He emphasized that while many companies are attempting to replicate Strategy’s approach, the company’s first-mover advantage allows it to scale its bitcoin accumulation effectively. Palmer noted, “MSTR trades at more than double the value of its bitcoin holdings, but that level is attractive.” This sentiment reflects the confidence investors have in Executive Chairman Michael Saylor and his team’s ability to generate shareholder value through strategic treasury operations.
A Closer Look at the $84 Billion Expansion Plan
Strategy’s recent announcement includes plans to raise a staggering $42 billion through the issuance of common stock and debt-like securities, effectively doubling its initial goal under the original 21/21 plan. The total capital-raising ambition has now reached an impressive $84 billion. TD Cowen’s Lance Vitanza has acknowledged the ambition of this updated strategy, describing it as “aggressive but by no means out of the question.” With the company having already raised $28.3 billion under its original plan, the new fundraising targets appear more credible, particularly given Strategy’s substantial $111 billion market cap and robust trading liquidity.
Analysts Predict Realistic Fundraising Goals
With an average daily share volume of $5.6 billion, analysts are optimistic about Strategy’s ability to secure an additional $56.7 billion over the next 32 months. Both Palmer and Vitanza have praised the company’s decision to increase its bitcoin-related performance targets. Strategy has raised its 2025 BTC Yield target from 15% to 25% and its BTC Gain target from $10 billion to $15 billion. Palmer noted that the company has already achieved approximately 90% of its original BTC Yield target in just four months, highlighting the effectiveness of its strategy.
Market Reactions and Bitcoin Price Trends
As of early Friday, MSTR shares rose by 1.8% to $388, coinciding with Bitcoin’s price stabilizing just below the $97,000 mark. During the post-earnings conference call, Saylor emphasized the importance of Bitcoin adoption among companies, stating, “The adoption of the Bitcoin standard by more companies legitimizes bitcoin and attracts more capital.” He elaborated that increased participation from various companies would stabilize and drive up Bitcoin’s price, thereby further accelerating the transition to a Bitcoin-centric economy.
Addressing Concerns Over Dilution and Market Volatility
CEO Fong Li addressed potential concerns regarding equity dilution, emphasizing the accretive nature of the equity raises. “Issuing equity at greater than one times mNAV [the multiple of the company’s net asset value
