TD Cowen Lowers Strategy's Target Price to $440, Citing Pressure on Bitcoin Yield Outlook

Odaily News Investment bank TD Cowen has lowered its one-year target price for bitcoin reserve company Strategy (formerly MicroStrategy) from $500 to $440. The adjustment is attributed to the dilution effect from continued issuance of common and preferred shares, which is expected to weaken bitcoin yield prospects. Analysts anticipate that Strategy may acquire approximately 155,000 additional bitcoins in fiscal year 2026, exceeding previous forecasts. However, a higher proportion of equity financing is expected to reduce the growth rate of bitcoin holdings per share.

TD Cowen noted that despite short-term yield pressures, related metrics are expected to improve in fiscal year 2027 as bitcoin prices recover. The report also highlighted that Strategy has recently increased its purchasing activity even during bitcoin price pullbacks, with most of the funds raised being used to accumulate more bitcoin. Analysts maintain a relatively positive long-term view on Strategy's value as a bitcoin exposure tool and believe some of its preferred shares offer potential for both income and capital appreciation. Additionally, regarding index inclusion, MSCI has not yet removed bitcoin reserve companies from its indices, which is seen as a short-term positive, although medium- to long-term uncertainties remain. (The Block)