TD Cowen lowers Strategy price target to $260, maintains Buy rating

Odaily reported that Wall Street investment bank TD Cowen has lowered its price target for bitcoin holding company Strategy (STRC) from $400 to $260, a reduction of approximately 35%, but retains a "Buy" rating. The firm also noted that the company's newly launched digital credit capital framework is constructive, continuously improving credit transparency and capital flexibility.

Analysts explained that this valuation adjustment is unrelated to the new capital framework, with the core factor being a downward revision of bitcoin price expectations: the BTC forecast for end-2026 was lowered from $140,000 to $100,000, and the end-2027 forecast was cut from $190,000 to $135,000. Even after the adjustment, the $260 price target still implies over 200% upside from the closing price of $92.68. The investment bank also acknowledged that this valuation gap appears high.

On the funding front, Strategy has now rebuilt $2.55 billion in cash reserves. Last week's issuance of 12 million common shares did not involve additional bitcoin purchases. Current cash can cover over 17 months of interest and preferred stock dividends, and combined with BTC realization capacity, can cover 26 months of expenses. The company has received approval for $1 billion each in common stock and preferred stock buybacks, marking a shift from one-way equity issuance to active capital structure optimization. The $1.25 billion in bitcoin realization funds will supplement cash reserves, while the preferred stock dividend rate has been raised from 11.5% to 12%, alleviating the previous 26% steep discount issue. (TheBlock)