Analyst predicts 140% upside for MicroStrategy stock

2026 has hardly brought any respite to the Strategy (Nasdaq: MSTR), formerly known as MicroStrategy, stock. Even though the stock is up nearly 10% this year, the performance has been rather flat over the last month.

Even then, an analyst has raised its price target on the Strategy stock due to two reasons.

Related: Jane Street is moving away from Strategy

Strategy's quarterly loss prompts possible strategy shift

Founded as a software company in 1989, the Michael Saylor-led company turned to Bitcoin amid the coronavirus pandemic in 2020.

It now holds 843,738 BTC on its balance sheet, consolidating its position as the world's leading publicly traded corporate Bitcoin treasury.

The ongoing slump in the crypto market led to Strategy reporting a loss of $12.54 billion during Q1 2026. In fact, the company posted a $14.46 billion unrealized loss on its Bitcoin holdings during the quarter.

During the earnings call following the disappointing results, Saylor even suggested selling a portion of the company's Bitcoin holdings to pay dividends.

However, it hasn't come to that so far and the company has continued to make its weekly Bitcoin purchases.

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TD Cowen analyst raises Strategy stock target

On May 19, TD Cowen raised its price target on the Strategy stock, Investing.com reported.

The analyst Lance Vitanza and associate Jonnathan Navarrete highlighted the firm's rising Bitcoin per share.

Preferred equity issuance raised around $1.95 billion, dominated the company's capital raises during Q2 2026. Nearly all proceeds have gone into Bitcoin purchases, the analyst noted.

The company has already acquired more Bitcoin so far in the quarter than TD Cowen had estimated for the entire quarter.

Vitanza now predicts Strategy purchasing approximately 100,000 BTC during Q2 2026. The analyst raised full-year BTC yield forecasts from 18.2% to 19.8%, and full-year BTC dollar gain estimates from $13.89 billion to $15.16 billion.

As the company's Bitcoin holdings per 1,000 fully diluted shares reached 2.21x as of May 17, as compared to 1.95x at the end of 2025, the analyst called it a "core validation of Strategy's financing model."

The analyst highlighted its Bitcoin holdings continuing to surpass share issuance even as dilution rises.