Bitcoin Hoarding Strategy and Strategy’s Stock Price Outlook

Bitcoin Hoarding Strategy and Strategy’s Stock Price Outlook

The rise of a new competitor, 21Capital, has put Strategy's Bitcoin hoarding strategy in the spotlight. Surprisingly, Wall Street analysts, including TD Cowen, believe this competition could drive Strategy's stock price higher, setting a target of $550—a 56.90% upside from its recent close of $368.71 on April 25, 2025. Let’s dive into why this is happening and what it means for investors.

Strategy’s Current Position

As of April 25, 2025, Strategy’s stock rose 5.24%, closing at $368.71. TD Cowen’s $550 target suggests significant growth potential. Strategy currently holds 538,200 Bitcoins, the largest corporate Bitcoin stash, far surpassing Marathon Holdings’ 47,531 coins.

The Rise of 21Capital

21Capital, backed by Japan’s SoftBank, stablecoin giant Tether, and Brandon Lutnick (son of U.S. Commerce Secretary Howard Lutnick), is a new Bitcoin investment firm. It plans to emulate Strategy’s approach by raising funds to buy and hoard Bitcoin. At launch, 21Capital will hold 42,000 Bitcoins, making it the third-largest corporate Bitcoin holder, behind Strategy and Marathon Holdings. The firm also plans to acquire more coins from partners and through additional purchases.

Why Competition Benefits Strategy

TD Cowen’s Lance Vitanza argues that 21Capital’s entry validates Strategy’s Bitcoin hoarding strategy. “The emergence of competitors proves that Strategy’s approach is effective,” Vitanza said. This could sway skeptical investors and institutions to trust Strategy’s vision. Moreover, competitors’ Bitcoin purchases could drive up demand, potentially boosting Bitcoin’s price and, in turn, Strategy’s asset value.

Long-Term Outlook

TD Cowen forecasts that by 2027, Strategy will hold 757,000 Bitcoins—about 3.6% of the total supply. If Bitcoin reaches $170,000 by then, Strategy’s Bitcoin holdings could be worth $129 billion, significantly enhancing its market position.

21Capital’s Background

21Capital was formed through a merger with Canter Equity Partners (CEP), a SPAC that raised $100 million last year. Following the announcement, CEP’s stock surged by 134%, reflecting strong market enthusiasm.

Conclusion

While 21Capital intensifies competition in the Bitcoin market, it reinforces Strategy’s pioneering strategy. Rising Bitcoin demand and TD Cowen’s bullish outlook suggest Strategy remains a compelling opportunity for investors. Keep an eye on both Strategy and 21Capital as they shape the future of corporate Bitcoin investment.

Note: This post is based on CoinDesk and TD Cowen reports. Consult financial experts before making investment decisions.