There’s a quiet hum in the crypto markets, often overshadowed by the daily price swings. But if you listen closely, you hear the steady, almost rhythmic, sound of a company stacking Bitcoin. Strategy, the firm that has made Bitcoin accumulation its core mission, just found a new channel for its digital treasury: the euro market.
- Strategy has entered the euro market by issuing €620 million in euro-denominated preferred stock (STRE) to fund Bitcoin acquisitions.
- This move is expected to significantly boost Strategy’s year-to-date Bitcoin yield, bringing it closer to its 2025 target.
- TD Cowen has initiated buy ratings on Strategy’s new STRE and existing STRC preferred shares, citing compelling income and price appreciation potential with less volatility than common shares or spot Bitcoin ETPs.
Research and brokerage firm TD Cowen recently shared its insights. Analysts Lance Vitanza and Jonnathan Navarrete highlighted Strategy’s latest move. The company issued €620 million, roughly $715 million, in its first euro-denominated preferred stock, dubbed STRE.
Think of preferred stock as a hybrid. It’s not quite common stock, which gives you voting rights and a share of profits. It’s also not a bond, which is a pure loan. Preferred stock often pays a fixed dividend, much like a bond, but it represents ownership in the company, like stock.
For Strategy, this STRE issuance is more than just another funding round. It marks their entry into euro-based, Bitcoin-backed credit markets. This opens a fresh pipeline for their ongoing Bitcoin treasury model, a strategy they’ve refined over years.
TD Cowen projects that after deployment, around €608.8 million in net proceeds will be used. The goal is to acquire 6,720 Bitcoin. They estimate an average purchase price of $104,500 per coin, which aligns with current market levels.
Now, here’s where it gets interesting. After accounting for the common-share issuance needed to cover STRE dividends over the next decade, TD Cowen calculates a net gain of 4,235 Bitcoin. It’s a clever mechanism, designed to expand their Bitcoin holdings per share.
This approach, using preferred securities to raise capital and then buying Bitcoin, remains central to Strategy’s growth. The STRE issuance should push Strategy’s year-to-date Bitcoin yield past 27%. That puts them very close to their stated 30% target for 2025.
But STRE isn’t the only tool in their kit. TD Cowen also noted that Strategy has resumed issuing its variable-rate Stretch preferred stock, STRC. This program recently funded more than half of Strategy’s latest $50 million Bitcoin acquisition.
Last week alone, $26.2 million of STRC shares were issued. This amount actually surpassed the total raised from all other preferred classes combined. STRC shares are designed to trade near $100 par, with a dividend rate that adjusts to keep the price stable, currently sitting at 10.5%.
So, where does all this accumulation leave Strategy? The company now holds a truly impressive sum: 641,692 Bitcoin. At recent valuations, that’s worth around $67 billion. It’s a number that tends to make even seasoned crypto watchers raise an eyebrow.
TD Cowen clearly likes what it sees. The firm initiated buy ratings and price targets on both the new STRE euro-denominated shares and the STRC shares. They also reiterated their buy ratings on Strategy’s existing STRF, STRK, and STRD classes.
The analysts set a €119, or $138, target for the new STRE shares. These shares boast 5.2x coverage from Strategy’s Bitcoin holdings. For the STRC shares, the target is the expected $100 par, backed by 5.5x Bitcoin coverage.
Other preferreds also received attention. The 8% STRK convertible preferreds carry a $140 target with 4.7x coverage. Junior STRD preferreds are targeted at $112, with 4.3x Bitcoin coverage. The senior STRF preferreds, with a 10% dividend rate, have a $126 price target and the strongest coverage at 7.2x Bitcoin.
“The preferred securities offer compelling income and price appreciation potential, we believe,” the analysts stated. They added that these shares come “with less expected volatility than the common shares, underlying bitcoin, or spot bitcoin ETPs.” It’s a compelling argument for those seeking a different kind of exposure to Bitcoin’s movements.
Bitcoin’s Road Ahead, According to TD Cowen
Beyond Strategy’s specific moves, TD Cowen also reaffirmed its broader outlook for Bitcoin itself. They maintained a $141,277 base-case assumption for Bitcoin by December 31. That’s a specific number, isn’t it?
But they didn’t stop there. They also outlined a more optimistic upside scenario, pushing Bitcoin to $160,000. On the flip side, a downside scenario saw the digital asset dropping to $60,000. Bitcoin previously reached an all-time high of around $126,000 on October 6.
These price targets aren’t pulled from thin air. TD Cowen’s base-case model assumes Strategy will make approximately $4 billion in quarterly Bitcoin acquisitions. That’s a lot of buying power, quarter after quarter.
In their upside scenario, that quarterly acquisition figure climbs even higher, to more than $4.5 billion. However, the bear case paints a starker picture. It suggests acquisitions would be “suspended due to market conditions or idiosyncratic loss of access to capital markets.” It’s a reminder that even the most determined strategies face external pressures.
TD Cowen also maintained a $535 price target on Strategy’s MSTR common stock. This represents a significant 124% upside from Monday’s closing price of $238.88. This target reflects their estimate of the company’s intrinsic Bitcoin value per share, looking out to December 2027.
By that point, the analysts forecast that Strategy will hold about 815,000 Bitcoin. It’s a long-term vision, one built on the relentless pursuit of more digital gold. Strategy continues to find new avenues to expand its Bitcoin treasury, proving that where there’s a will, there’s often a way to stack more sats.
