Shares in Strategy Stock Could Surge as New Entrant Twenty One Strengthens Bitcoin Strategy

TD Cowen Analysts Bullish on MSTR as New Rival Twenty One Enters Bitcoin Market

Michael Saylor’s bitcoin acquisition strategy, which has garnered both praise and criticism, is now facing a strong new contender—Twenty One, a bitcoin-focused investment firm backed by SoftBank, Tether, and Cantor Fitzgerald. Despite being seen as a competitor, analysts at TD Cowen believe that Twenty One’s entrance into the market could ultimately bolster Saylor’s long-term strategy.

Set to launch with nearly $4 billion in bitcoin on its balance sheet, Twenty One is poised to become the third-largest publicly held bitcoin treasury from day one. While such a large holding could potentially challenge Saylor’s MSTR, TD Cowen’s Lance Vitanza and Jonnathan Navarrete view it as a significant validation of Saylor’s approach, not a threat. They argue that the launch of Twenty One highlights the growing recognition of bitcoin as a strategic asset for institutional investors.

“Rather than threatening MSTR, the creation of Twenty One actually serves as the strongest endorsement yet of Strategy’s bitcoin accumulation model,” said Vitanza and Navarrete, adding that they are now “incrementally bullish” on MSTR’s prospects.

The analysts suggest that the introduction of a major new player like Twenty One could convert even the most skeptical institutional investors into supporters of Saylor’s strategy. The firm also believes that the increased demand for bitcoin from such a high-profile player could offset any potential negative impact on MSTR’s capital costs and attract more capital into the market.

“The growing institutional adoption of bitcoin is exactly what Michael Saylor has been advocating for,” the analysts noted, pointing to Saylor’s long-standing push for other companies to follow his lead.

TD Cowen has reaffirmed its $550 price target for MSTR, forecasting that by the end of fiscal year 2027, the company could hold up to 757,000 BTC, representing about 3.6% of the total bitcoin supply. If bitcoin reaches an average price of $170,000 by then, the value of MSTR’s holdings could exceed $129 billion.

The market has already reacted to the news, with shares of Cantor Equity Partners (CEP), the SPAC vehicle for Twenty One, surging by 130% since the announcement, while MSTR’s stock has remained steady.