MicroStrategy price target raised to $525 from $392 at TD Cowen

TD Cowen raised the firm’s price target on MicroStrategy (MSTR) to $525 from $392 and keeps a Buy rating on the shares after the company announced it had issued another $2.5B of equity under its at-the-market program, “fresh off” last week’s successful $3B convertible bond issuance, with all proceeds used yet again to purchase bitcoin. The firm now models $108B of intrinsic bitcoin value by the end of FY27, which it says “could prove conservative.” MicroStrategy’s ability to tap the capital markets in size reflects that the market has accepted the company’s announced strategy to acquire and hold bitcoin and to use its balance sheet to do so on terms that are “clearly and demonstrably accretive to existing shareholders,” the analyst added.