TD Cowen sees STRC financing driving BTC yield increase and raising Strategy target price Odaily Planet Daily News: Investment bank TD Cowen raised its Strategy (MSTR) target price from $385 to $395 on Thursday, believing that the capital efficiency of its Bitcoin accumulation strategy was undervalued by the market after the company increased its issuance of STRC perpetual preferred shares. Analysts Lance Vitanza and Jonathan Navarrete stated that the new target price still has over 110% upward potential compared to Strategy's closing price of $186.82 on Wednesday. Analysis indicates that Strategy is gradually reducing common stock financing and relying more on STRC perpetual preferred stocks with a yield of 11.5% to provide funding for Bitcoin purchases. STRC is also a core component of Michael Saylor's "42/42 Plan", which aims to raise $42 billion over three years through equity and fixed income instruments. TD Cowen believes that the market underestimates the enhancing effect of STRC structure on BTC Yield. This indicator is used to measure the growth efficiency of a company's Bitcoin holdings per share on a fully diluted basis. The report raised the BTC Yield forecast for Strategy 2026 fiscal year from 16.7% to 18.2%, and from 5.4% to 9.6% in 2027. In addition, analysts believe that market concerns about Strategy's "perpetual dilution machine" have been exaggerated. At present, the company's annual preferred stock dividend payout of approximately $1.5 billion is only equivalent to about 2.2% of the value of its 818334 BTC reserves. TD Cowen's basic scenario predicts that Bitcoin will reach $140000 by the end of 2026; In an optimistic scenario, BTC is expected to rise to $175000, while Strategy's quarterly Bitcoin purchases are expected to exceed $5 billion. （The Block）