TD Cowen Analysts See Twenty One’s Launch as Strengthening Saylor’s Bitcoin Strategy
Michael Saylor’s bitcoin buying strategy, which has sparked both praise and skepticism, is now facing a formidable new rival in the form of Twenty One, a bitcoin-focused investment firm backed by SoftBank, Tether, and Cantor Fitzgerald. But according to analysts at TD Cowen, this new entrant could actually validate Saylor’s long-term approach and even attract more institutional support for his vision.
Twenty One, which will begin with nearly $4 billion in bitcoin on its balance sheet, will immediately become the third-largest publicly-held bitcoin treasury, rivaling MSTR. Despite this, TD Cowen analysts Lance Vitanza and Jonnathan Navarrete believe the competition won’t undermine Saylor’s strategy. In fact, they see it as a major endorsement of the viability of bitcoin as a strategic corporate asset.
“The launch of Twenty One represents the most substantial validation yet of MSTR’s bitcoin acquisition model,” the analysts wrote, noting that this development leaves them “incrementally bullish” on MSTR’s prospects.
TD Cowen points out that the rise of Twenty One could even convert some of MSTR’s harshest critics, particularly institutional investors, into believers in Saylor’s long-term vision for bitcoin. Furthermore, they suggest that Twenty One’s involvement in the market could drive increased bitcoin demand, benefiting MSTR in the process by attracting further capital into the asset class.
“Michael Saylor’s push for greater corporate bitcoin adoption is gaining momentum, and Twenty One’s entry reinforces that,” the analysts remarked.
TD Cowen has maintained its $550 price target for MSTR, with a forecast that by 2027, the company could hold 757,000 BTC, or about 3.6% of the total bitcoin supply. Assuming bitcoin reaches an average price of $170,000 by then, this would value MSTR’s holdings at approximately $129 billion.
The market is already responding to this shift. Shares of Cantor Equity Partners (CEP), the SPAC vehicle behind Twenty One, have risen by 130% since the news broke, while MSTR stock has remained stable.
