Stock of Strategy Firm May Rise as Twenty One Endorses Its Bitcoin Approach

TD Cowen Analysts See Twenty One’s Launch as Validation for MSTR’s Bitcoin Strategy

Michael Saylor’s Bitcoin acquisition strategy, which has attracted both praise and criticism, is now facing significant competition from a new player—one that could actually bolster his long-term vision. According to TD Cowen analysts, the rise of Twenty One, a new bitcoin-focused investment company, might actually validate Saylor’s approach and shift institutional sentiment in favor of MSTR.

Twenty One, launched by SoftBank, Tether, and Cantor Fitzgerald, plans to structure its business around holding bitcoin as its main asset. With nearly $4 billion worth of BTC on its balance sheet from day one, the firm will start as the third-largest publicly-held bitcoin treasury. This massive launch has garnered attention across the market.

While such a major competitor could traditionally be seen as a challenge to existing firms like MSTR, analysts Lance Vitanza and Jonnathan Navarrete argue that it instead strengthens the case for Saylor’s bitcoin strategy. “The introduction of Twenty One serves as the most significant endorsement of Strategy’s bitcoin model,” the analysts stated, becoming “incrementally bullish” on MSTR’s prospects.

In fact, TD Cowen suggests that the launch of Twenty One could convert some of MSTR’s fiercest critics—institutional investors—into supporters of Saylor’s vision for bitcoin. The firm also sees the new entrant’s arrival as a potential boost for bitcoin demand, which could outweigh any impact on MSTR’s capital costs and help drive more institutional interest into the asset.

“The strategy Michael Saylor has long advocated for—companies holding bitcoin as part of their balance sheet—now has even more credibility,” said the analysts.

TD Cowen maintains its $550 price target for MSTR, forecasting that by 2027, the company could hold as much as 757,000 BTC, or 3.6% of bitcoin’s total supply. If bitcoin’s average price reaches $170,000 by then, TD Cowen estimates the value of this stash could top $129 billion.

The market is already reacting to the news. Cantor Equity Partners (CEP), the SPAC vehicle for Twenty One, has seen its stock climb by 130% since the announcement, while MSTR’s shares have remained stable.