Overview
- Between May 11 and May 17, Strategy bought 24,869 BTC for about $2.01 billion, lifting its treasury to 843,738 coins which equals more than 4% of Bitcoin’s 21 million supply.
- The company financed most Q2 purchases through its STRC perpetual preferred offering, raising roughly $1.95 billion and using the proceeds primarily to buy more Bitcoin.
- Strategy also retired about $1.5 billion of convertible notes at roughly an 8% discount, a move TD Cowen says reduces refinancing risk and strengthens the balance sheet.
- TD Cowen raised its MSTR price target to $400 and kept a Buy rating while forecasting close to 100,000 BTC purchases in Q2 and building its model on a sharp Bitcoin rally to around $140,000 by year end.
- The stock trades as a leveraged Bitcoin proxy: revenue topped estimates but EPS was deeply negative, institutional ownership has risen to roughly 60%, and the thesis depends on continued Bitcoin gains and access to accretive financing.