Wall Street Analyst Indicates That Twenty One’s Arrival as a Competitor to Strategy (MSTR) is a ‘Marginally Positive’ Signal
Michael Saylor’s bitcoin buying strategy has drawn both supporters and skeptics. However, a new competitor has emerged, already holding nearly $4 billion in BTC on its balance sheet—and some analysts view this as a bullish signal. When SoftBank, Tether, and Cantor Fitzgerald announced plans to establish a new bitcoin investment company called Twenty One—designed specifically to focus on holding bitcoin as its primary business—many perceived it as a significant challenger to Saylor’s approach (MSTR). On day one, its bitcoin balance sheet would rank as the third-largest publicly held bitcoin treasury.
In traditional finance, such substantial competition could diminish a dominant company’s market share and opportunities for capital raising, especially since Twenty One is potentially launching with over 42,000 BTC at inception (valued at nearly $4 billion at the current market price). However, TD Cowen analysts Lance Vitanza and Jonnathan Navarrete interpret it differently: “The proposed launch of Twenty One reflects the most meaningful validation of Strategy’s bitcoin treasury operations to date,” leading them to feel “incrementally bullish” on the stock. They noted that this new competitor could even sway institutional investors, typically the biggest skeptics of MSTR, into recognizing the value of Saylor’s bitcoin buying strategy. Additionally, the entry of such a notable player could boost demand for bitcoin, potentially offsetting any pressure on Strategy’s cost of capital and attracting further investment in bitcoin.
“Certainly this is what Michael Saylor professes to believe,” the analysts stated, referencing the Strategy founder’s long-standing advocacy for more companies to adopt similar practices. TD Cowen has maintained its $550 price target for MSTR, projecting that the company could hold 757,000 BTC by the conclusion of fiscal year 2027—approximately 3.6% of the total bitcoin supply. The analysts estimate that if bitcoin reaches an average price of $170,000 by that time, this collection could be valued at $129 billion.
The bullish effects of this competition are already visible in the market. Shares of Cantor Equity Partners (CEP), the SPAC vehicle for Twenty One, have surged by as much as 130% since the announcement, while MSTR stocks have held steady.
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