MSTR Soars 20% as TD Cowen Doubles Down on $440 Target

 Key Insights:

• MSTR stock rebounds 20% after falling to $107, tracking Bitcoin’s bounce above $69,000.
• TD Cowen maintains $440 target, citing MicroStrategy’s $2.25B cash and debt flexibility.
• CEO says BTC must hit $8K before liquidation; company will keep buying during downturns.

MicroStrategy (MSTR) rose over 20% today, trading near $128 after falling to $107 yesterday. The move follows a strong bounce in the crypto market, where Bitcoin (BTC) reclaimed the $69,000 level after a steep drop. BTC is up more than 10% on the day.

The stock had been under pressure earlier this week after a sharp sell-off in Bitcoin. MSTR’s recovery today helped reverse much of that decline. The company holds a large Bitcoin position, which has made its stock highly sensitive to moves in the asset.

TD Cowen Analyst Repeats Bullish Call

Lance Vitanza, an analyst at TD Cowen, maintained a Buy rating on MSTR and kept the price target at $440. In a note to clients, Vitanza said the company is in a position to manage a deeper Bitcoin correction if it happens. He wrote, “Strategy has the capital to handle a much deeper Bitcoin decline,” referring to MicroStrategy’s financial resources.

He pointed to the company’s $2.25 billion in cash. That amount, he noted, could cover $900 million in fixed costs for nearly 17 months and also help with a $1 billion bond redemption due in 2027.

Company Signals No Change in BTC Strategy

CEO Phong Le said the company is not under pressure to sell its Bitcoin holdings, even if prices fall. He mentioned that Bitcoin would need to drop to $8,000 before any liquidation would be needed to manage debt linked to convertible notes. Executive Chairman Michael Saylor added that MicroStrategy plans to continue buying more Bitcoin during downturns.

Earlier this week, the company reported a $12.4 billion loss in Q4. That report had contributed to the drop to $106, but today’s gains mark a strong rebound from those lows.

Crypto Stocks See Strong Session

Other crypto-related stocks also moved higher. Coinbase (COIN) and Robinhood (HOOD) gained 10% and 15%, while BitMine rose 15%, recovering from a sharp decline the previous day. ETH also bounced back above $2,000, helping support the broader market.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.