Strategy Shifts Focus from 100% BTC Allocation
Strategy, Inc., the company behind the BTC accumulation strategy, has adjusted its approach to include a larger cash reserve. Analysts from TD Cowen and Benchmark are endorsing this shift, citing that it's essential for buying more bitcoin in the long term.
On Strategy's earnings call, Executive Chairman Michael Saylor stated: 'Although in the past we've had 100% allocation to BTC, I don't think it'll be 100% in the future. I think it'll be a mix. Maybe the best way to buy the most bitcoin is not to buy the most bitcoin.'
The company's preferred stock, STRC, has become its central objective for raising capital to buy more BTC. Institutional holdings of STRC have nearly tripled from $1.1 billion in mid-March to $3.1 billion as of July 1, taking institutions to 29% of the security.
TD Cowen carried a price target of $260 with a buy rating, while Benchmark cut its price target to $435 from $570 and reset its year-end 2026 BTC assumption to $100,000 from $125,000.