A Wall Street analysis from TD Cowen indicates that the launch of Twenty One, a new rival focused on holding Bitcoin, could boost institutional sentiment towards Strategy's (MSTR) long-term Bitcoin strategy. With an initial balance sheet of nearly $4 billion in Bitcoin, Twenty One ranks as the third-largest publicly held Bitcoin treasury, prompting analysts to consider this competition as validation of MSTR's approach. They maintain a $550 price target for MSTR, projecting it could hold 757,000 BTC by fiscal year 2027, potentially valued at $129 billion if Bitcoin averages $170,000 by then. The presence of Twenty One could convert skeptics into believers among institutional investors, increasing overall demand for Bitcoin and benefiting MSTR despite the competitive landscape. This positive outlook is reflected in the recent market response, with shares of the SPAC associated with Twenty One jumping 130% since the announcement, while MSTR's stock remains resilient.

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