TD Cowen has increased its price target for MicroStrategy (MSTR) from $385 to $395, highlighting the company's strategic use of STRC perpetual preferred shares to enhance bitcoin yield. Analysts Lance Vitanza and Jonnathan Navarrete noted that this financing approach, part of Michael Saylor's "42/42 Plan," is underappreciated by the market and boosts capital efficiency. The new target suggests a potential upside of over 110% from the recent closing price of $186.82. MicroStrategy is shifting from common stock financing to relying more on STRC perpetual preferred shares, which offer an 11.5% yield, to fund bitcoin acquisitions. TD Cowen has adjusted its fiscal 2026 bitcoin yield forecast from 16.7% to 18.2%, and its 2027 forecast from 5.4% to 9.6%. The analysts argue that concerns about dilution are overstated, as the annual preferred dividend payout is only about 2.2% of the value of MicroStrategy's 818,300 BTC reserves. They project bitcoin could reach $140,000 by the end of 2026, with potential to hit $175,000, enabling quarterly bitcoin purchases to surpass $5 billion.