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According to The Block, TD Cowen has raised its Strategy (MSTR) target price from $385 to $395, believing that the market has underestimated its capital efficiency by raising Bitcoin returns through STRC perpetual preferred stock financing. Analysts Lance Vitanza and Jonathan Navarrete stated that the new target price has over 110% upside potential compared to Wednesday's closing price of $186.82. Strategy is reducing common stock financing and relying more on STRC perpetual preferred stock with a yield of 11.5% to fund Bitcoin purchases. STRC is the core part of Michael Saylor's "42/42 Plan", which aims to raise $42 billion over three years through equity and fixed income instruments. TD Cowen has raised its BTC Yield forecast for the 2026 fiscal year from 16.7% to 18.2%, and for 2027 from 5.4% to 9.6%. Analysts believe that market concerns about the 'perpetual dilution machine' are exaggerated, with the company's annual preferred stock dividend payout of approximately $1.5 billion accounting for only about 2.2% of its 818300 BTC reserve value. TD Cowen expects Bitcoin to reach $140000 by the end of 2026, rising to $175000 in an optimistic scenario, with Strategy's quarterly Bitcoin purchases potentially exceeding $5 billion.