Strategy Creates $1.6B Flexible Cash Pool

Bernstein predicts Bitcoin could reach $300,000 by 2029, citing the debasement trade and U.S. dollar concerns. The firm also notes that Strategy Inc., the largest corporate holder of Bitcoin, could benefit from this rally. Strategy's high-yield perpetual preferred stock is mentioned as a potential beneficiary. Bernstein maintains an outperform rating on Strategy, with a lowered price target of $350, implying 176% upside.

Bernstein analysts predict bitcoin could reach $150,000 by mid-2027 and $300,000 by 2029, driven by macroeconomic trends. They cite a 'debasement trade' and increased institutional interest. Bernstein maintained an Outperform rating on Strategy but reduced its price target to $350 from $450, citing updated bitcoin cycle outlook and equity dilution.

Strategy launched a $1.6B cash pool after raising $2B from selling 18.26M MSTR shares. It repurchased 1.43M STRC preferred shares for $136.4M and added $300M to its USD reserve. The company holds 840,447 BTC, acquired at an average price of $75,385. The new cash account aims to provide flexibility for future market responses, including potential Bitcoin purchases.

Michael Saylor described Bitcoin as a mechanism for converting economic value into a digital form, calling it 'digital energy'. His company, Strategy, holds 840,447 BTC, worth about $64.86 billion at the time of writing, slightly above its acquisition cost. Strategy also manages digital credit products, including preferred shares like STRC, and has been using proceeds from common share sales to support these instruments.

Standard Chartered's Geoffrey Kendrick suggests Bitcoin's year-end target of $100k may be too low due to recent price surges and ETF inflows. Bitcoin's price has risen sharply, liquidating short positions and attracting long-term investors. Strategy, the world's largest corporate Bitcoin treasury, has seen its holdings return to breakeven after recent sales.

Bitcoin (BTC) reached $77,000, allowing Strategy's corporate treasury to return to profit. Strategy's cost basis is $75,385 for 840,447 BTC, with a year-to-date gain of approximately $450 million. The company recently sold 1,690 BTC to repurchase shares. Analysts note new support below $68,000.