Wall Street Cheers as Aggressive Bitcoin Accumulation Strategy Gains Traction

Analysts shrug off volatility fears—because when has reckless exuberance ever backfired in finance?

Institutional players are now openly endorsing full-throttle BTC acquisition, with one Goldman Sachs memo quipping, ’Risk management? That’s what the Fed’s printer is for.’

The move signals growing confidence in crypto’s store-of-value narrative—or perhaps just desperation for yield in a zero-rate dystopia.

Wall Street analysts share bullish targets for Strategy

“While the number of companies that have sought to replicate Strategy’s bitcoin acquisition strategy has continued to grow rapidly … MSTR yesterday issued a reminder of the extent of its first-mover advantage and how its ability to accelerate its accumulation of bitcoin has continued to increase as its platform has scaled,” Mark Palmer, Benchmark.

Strategy’s CEO, Michael Saylor, recently announced the firm’s plans to use both common stock and debt to substantially increase its Bitcoin holdings. The plan would help the company raise $84 billion, split equally between debt and stock offerings.

Strategy announces BTC Yield of 13.7% and BTC $ Gain of $5.8B year-to-date, doubles capital plan to $42B equity and $42B fixed income to purchase bitcoin, and increases BTC Yield target from 15% to 25% and BTC $ Gain target from $10B to $15B. $MSTR $STRK $STRF

While the plans are ambitious, TD Cowen analyst Lance Vitanza stated that it is not out of the question. Strategy’s current market cap of $111 billion boosts the credibility of the raise. Vitanza also shared his price target of $550.

Strategy currently holds 553,555 Bitcoins, representing about 2.5% of the total supply. While the company’s performance has been strong, often outperforming Bitcoin itself, its highly Leveraged position is not without risk.

While Bitcoin remains stable, Strategy can reap significant gains for investors. However, a substantial drop in BTC price would make the company’s debt unsustainable. What is worse, if Strategy were forced to sell some of its BTC to pay off its debts, it could have a cascading effect on the Bitcoin markets.