MicroStrategy preferred shares are issued at a 20% premium, TD Cowen raises MSTR's target price to $680

MicroStrategy Strategy (formerly MicroStrategy) raised funds again to buy BTC through preferred and common stock issuance. Looking closely at the issuance conditions, the preferred stocks have changed from a discounted to a 20% premium issuance, showing that its strategy has successfully attracted market funds. Investment bank TD Cowen also raised the MSTR target price to $680 and rated three preferred stocks as "Buy".

Strategy Raises Funds through Preferred and Common Stock Issuance to Buy BTC

Strategy raised funds through issuance

• Common stock MSTR raised $330.9 million
• 8% Convertible preferred stock STRK raised $71.1 million
• 10% Preferred stock STRF raised $55.3 million
• 10% Preferred stock STRD raised $15 million

A total of $472.3 million was raised and used entirely to buy BTC. Strategy acquired 4,225 BTC at an average cost of $111,827. As of July 13, 2025, MicroStrategy holds 601,550 BTC, with an average cost of $71,268 per BTC, for a total cost of $42.87 billion.

Preferred Stocks Issued at 20% Premium?

Observing the preferred stock issuance conditions, the three preferred stocks have quietly increased from the initial issuance prices of $80 and $85 to $124, $125, and $95. The numbers in the table are calculated based on the nominal amount and net proceeds, which include issuance costs, so the actual issuance price may be higher.

This demonstrates that MicroStrategy's preferred stock fundraising has successfully attracted market funds, as investors can receive fixed quarterly dividends with downside protection at $100, making it an attractive investment option unless MicroStrategy goes out of business.

(Can Bitcoin Concept Stocks Earn Steady Quarterly Dividends? Comprehensive Analysis of MicroStrategy's Three Preferred Stocks)

TD Cowen Raises MSTR Target Price to $680

Investment bank TD Cowen predicts BTC will reach $155,000 by December this year, and given that Strategy is the world's largest BTC holder, this will almost certainly drive up the company's stock price. TD Cowen also raised the Strategy stock (MSTR) target to $680 per share. Additionally, it rated Strategy's three preferred stocks as "Buy", stating that these securities "offer compelling yield and price appreciation potential with expected volatility lower than common stock or underlying BTC", with the following target prices:

• MSTR: $680
• STRK: $140
• STRF: $126
• STRD: $112