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

ME News message: On June 30 (UTC+8), Wall Street investment bank TD Cowen lowered the target price for Bitcoin holdings listed company Strategy from $400 to $260, a reduction of about 35%, while maintaining a “Buy” rating. It also said that the company’s newly launched digital credit capital framework is constructive, continuously improving credit transparency and capital flexibility. The analyst noted that this valuation downgrade is not related to the new capital framework; the key reason is a lower expectation for the Bitcoin price: the forecast for BTC at the end of 2026 was cut from $140,000 to $100,000, and the forecast for the end of 2027 was reduced from $190,000 to $135,000. Even after the adjustment, the $260 target price still leaves more than 200% upside compared with the $92.68 closing price, and the investment bank also acknowledged that the valuation gap appears somewhat high.

On the funding front, Strategy has rebuilt $2.55 billion in cash reserves. The company’s issuance of 12 million shares of common stock last week did not add to its Bitcoin holdings. With its existing cash, it can cover more than 17 months of interest and preferred stock dividends; together with its BTC liquidation capacity, it can cover 26 months of expenses. The company has obtained approval to repurchase $1.0 billion of common stock and $1.0 billion of preferred stock, marking a shift from issuing shares in one direction to proactively optimizing its capital structure. The $1.25 billion in BTC liquidation proceeds will replenish cash reserves, and the preferred stock dividend rate will be raised from 11.5% to 12%, easing the previously 26% steep discount problem. (Source: ODAILY)