TD Cowen cut its price target for Strategy from $400 to $260, a reduction of approximately 35%, while maintaining its buy rating on the stock. The research firm explained that the adjustment is driven primarily by a downward revision of its bitcoin projections, not by the new capital framework presented by the company.
TD Cowen analysts Lance Vitanza and Jonnathan Navarrete updated their year-end 2026 bitcoin price estimate to around $100,000, down from a previous projection of $140,000, and for end of 2027 to $135,000, below the prior $190,000. The $260 price target implies an upside potential of over 200% from the previous close at $92.68, a gap the analysts themselves acknowledged as unusually wide.
Regarding Strategy’s new Digital Credit Capital Framework, TD Cowen described it as “incrementally constructive.” The company rebuilt its dollar reserve to $2.55 billion after issuing more than 12 million common shares over the past week without acquiring new bitcoins.
The framework also includes buyback authorizations of up to $1 billion in preferred shares and $1 billion in common shares, and establishes a bitcoin monetization program with a cap of $1.25 billion aimed at reinforcing that reserve. TD Cowen noted that these elements formalize dynamics the firm had already modeled in a note published in May.
Source: https://sso.bluematrix.com/idp/authn?conversation=e1s1&OCT=A5KI-ZSJE-NPZK-7HRO
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