TD Cowen Sees Twenty One’s Launch as Boost for MSTR’s Bitcoin Strategy

Michael Saylor’s controversial Bitcoin strategy, which has long divided opinion, is now facing new competition—though some analysts believe this could actually work in Saylor’s favor. TD Cowen analysts are optimistic that the emergence of a new bitcoin-focused investment firm, Twenty One, could provide significant validation for Saylor’s long-term vision.

Founded by SoftBank, Tether, and Cantor Fitzgerald, Twenty One is structured around holding bitcoin as its main business asset. Upon launch, the company will hold nearly $4 billion in BTC, immediately positioning itself as the third-largest publicly held bitcoin treasury. While this could be seen as a challenge to Saylor’s MSTR strategy, analysts at TD Cowen argue that the competition actually reinforces the viability of Saylor’s approach.

Lance Vitanza and Jonnathan Navarrete, the TD Cowen analysts, wrote that the debut of Twenty One represents the most compelling endorsement of Saylor’s bitcoin acquisition strategy to date. They noted that this could even convince MSTR’s biggest critics, including institutional investors, to reconsider the merits of Saylor’s approach. The analysts are now “incrementally bullish” on MSTR, suggesting that the entry of a major player like Twenty One into the market could increase overall bitcoin demand, benefiting MSTR’s holdings.

“Michael Saylor has been advocating for this kind of strategy for years, and now, with this new competitor, it’s clear that the idea is gaining mainstream legitimacy,” the analysts wrote.

TD Cowen has maintained its $550 price target for MSTR, predicting that by the end of fiscal year 2027, the company could hold 757,000 BTC, or around 3.6% of the total bitcoin supply. With an average price of $170,000 per bitcoin by 2027, this could see MSTR’s bitcoin holdings valued at $129 billion.

The market has already reacted positively to the news. Shares of Cantor Equity Partners (CEP), the SPAC vehicle for Twenty One, have soared by 130% since the announcement, while MSTR’s stock has remained resilient.