TD Cowen Cuts Strategy Price Target to $260 While Maintaining Buy Rating

TD Cowen lowered its price target on bitcoin-holding public company Strategy to $260 from $400, a reduction of about 35%, while maintaining a buy rating.

According to Odaily, the firm said Strategy’s newly introduced digital credit capital framework is constructive and continues to improve credit transparency and capital flexibility.

Analysts said the valuation cut was not related to the new capital framework, but instead reflected reduced bitcoin price expectations. TD Cowen lowered its forecast for bitcoin at the end of 2026 to $100,000 from $140,000, and cut its end-2027 forecast to $135,000 from $190,000.

TD Cowen noted that even after the revision, the $260 target price implies more than 200% upside from Strategy’s $92.68 closing price, while also acknowledging the valuation gap appears high.

On funding, Strategy has rebuilt a $2.55 billion cash reserve. The company issued 12 million shares of common stock last week but did not increase its bitcoin holdings, Odaily reported.

Strategy’s existing cash is expected to cover more than 17 months of interest and preferred stock dividends, and combined with bitcoin monetization capacity, it can cover 26 months of expenses. The company has also been approved to repurchase up to $1 billion each of common and preferred stock, shifting from one-way equity issuance to actively optimizing its capital structure.

Odaily reported that $1.25 billion in bitcoin monetization funds will supplement cash reserves, and the preferred stock dividend was raised to 12% from 11.5% to address a previously cited 26% discount.