Michael Saylor’s Bitcoin purchase strategy had both believers and skeptics. But a new rival came straight up and already kept almost $ 4 billion BTC on its balance – and that’s a bullish character, according to at least one Wall Street analyst.
When Softbank, Tether and Cantor Fitzgerald revealed plans to launch a new Bitcoin investment company called Twenty One, structured explicitly around keeping Bitcoin as its primary business, many called it a significant rival to Saylor’s strategy (Mstr). Its day-a bitcoin balance attitude would rank it as the third largest publicly held Bitcoin Treasury on day one.
In traditional funding, one could argue that such a large competition could inhibit a dominant company’s market share and capital raise the possibilities, especially since 21 are already potentially launched by over 42,000 BTC at launch (worth almost $ 4 billion at spot price).
However, TD Cowen analysts Lance Vitanza and Jonnathan Navarrete see it as the opposite: “The suggested launch of Twenty One reflects the most meaningful validation of the strategy’s Bitcoin Treasury operations to date,” Leaving the analysts “step-by-step Bullish” on the stock.
The analysts added that the new rival could even convert Mstr’s greatest skeptics, institutional investors, to believers in Saylor’s Bitcoin purchase strategy. The move would also increase the demand for Bitcoin from a high -profile participant who could offset any pressure on the strategy’s capital costs and attract more capital to buy Bitcoin.
“That’s what Michael Saylor acknowledges to believe,” the analysts wrote, pointing to the strategy’s founder’s long -standing push for several companies to adopt similar strategies.
TD Cowen maintained its price target of $ 550 for Mstr and projects that the company could have 757,000 BTC at the end of the financial year 2027 – approx. 3.6% of Bitcoin’s total supply. The analysts said that if Bitcoin hits an average price of $ 170,000 before then, TD Cowen estimates that Stash could be worth $ 129 billion.
The bullish effect of this rivalry is already prominent in the market. The shares in Cantor Equity Partners (CEP), Twenty One’s SPAC vehicle, have already risen as much as 130% since the message, while Mstr shares held strong.
Read more: Cantor Skyrockets 130% as dealers Fomo on the stock at Bitcoin Spac Frenzy
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